COMPANY NEWS IN BRIEF

Mondi inks deal for Canadian pulp mill

Packaging and paper group Mondi said it had reached a US$5 million (R94 million) deal to acquire a pulp mill in Canada. It is also planning to spend €400 million (about R8.2 billion) on expanding the operation to meet growing demand for paper-based packaging in the Americas.

The intention, still subject to engineering and permitting considerations, is to install a new 200 000-tonne-per-year kraft paper machine at the Hinton pulp mill in Alberta, Canada, Mondi said on Monday. This is anticipated to be operational from the second half of 2027.

Mondi is the world's largest producer of kraft paper, which is widely used in, among other things, packaging for food products and for shipping items. This is due to its strength and anti-tear properties.

Mondi, valued at about R143 billion on the JSE with operations in over 30 countries, has said previously that Europe and North America accounts for about half of global packaging demand that is estimated at around US$1 trillion per annum. It is in the process of investing in structurally growing markets, where demand is being supported by rising e-commerce demand, as well as consumer interest in more environmentally friendly packaging options.

The company said on Monday the acquisition of the Canadian mill and associated planned investment would fully integrate its operations in the region, with customers benefitting from a fully integrated and much shorter supply chain. This will further reduce the group's carbon footprint, it said.-Fin24

Bell Equpment CEO to step down

Bell Equipment, which makes and sells heavy machinery such as dump trucks and forklifts, said on Monday CEO Leon Goosen is set to step down at the end of the year in order to pursue another opportunity.

Goosen joined Bell's board in January 2009 and was the chief operations officer from December 2014 until he was appointed as the CEO in 2018. He took over from long-serving CEO Gary Bell, who shifted to chairperson.

Valued at about R1.4 billion on the JSE, Bell has manufacturing operations in SA and Germany, but operates globally, with machines in over 80 countries.

The group has said recently it is enjoying the benefits of a record order book, and was even taking orders for 2024. However, given the fallout from load shedding, it has been investigating increasing manufacturing in its German factory, sourcing of fabrications from outside of South Africa, as well as a solar system for its Richard's Bay factory.

Shares in Bell were down about 1.7% on Monday afternoon, unchanged after the announcement, having risen by more than a fifth over the past one year.-Fin24

Provita loses court battle

Provita owner National Brands, a subsidiary of AVI, has lost a trademark battle against competitor Snactive after the North Gauteng High Court in Pretoria concluded its rights did not extend to its biscuit's characteristics.

National Brands asked the court for interdictory relief to stop the manufacturing, marketing and selling of Snactive, a competing savoury biscuit which entered the market in 2012.

The company argued that Snactive biscuits are "virtually identical in shape and appearance" to the "extremely well-known" and trademarked Provita biscuit. The Provita biscuit's shape, rounded edges, and "unique pattern of docking holes" appeared on Snactive's product, and serves to confuse members of the public, it argued.

But in a judgment delivered by the North Gauteng High Court in Pretoria on 30 June, National Brand's case against Continental Biscuit Manufacturers was dismissed with costs.

Continental Biscuit Manufacturers admitted it had entered the savoury biscuit to compete with Provita, but further argued it offered consumers a choice, and had three fundamental differences – the brand name, the packaging and the ingredients.-Fin24



Agiltee SA's assets to be sold

Ten electric scooters, four office chairs, two helmets and a reception desk. These are the assets of electric vehicle company Agilitee SA that will go on auction to in 10 days to pay off a R759 000 debt to a former employee.



Agilitee's founder and CEO, Mandla Lamba, has strenuously denied that any of the group's assets will be put up for auction. But a notice of the auction that names Agilitee SA as the debtor has now been published. It states that the Sandton North Sheriff will, on 20 July, sell off the moveable assets of the group's store in Fourways Mall, Gauteng, for cash.



Agilitee SA did not immediately respond to a request for comment.



Last week, Lamba launched a scathing verbal attack against ex-employee Christa Brits, who won the arbitration award, calling her "evil" and saying she will not get "one cent" of Agilitee's money.He urged his followers to "make sure you make her sleep less at night". He also threatened a journalist covering the case, saying his "boys would probably collect him" and "bring him to me so we can have a discussion face to face".-Fin24