The company has signed a delivery contract with Metso for the machine, which will be able to produce 470,000 tonnes of board a year.
The machine is part of a £237m (€350m) investment that will also include a new corrugated box plant with a capacity of up to 250 million sqm per year.
The company has still to decide whether to locate the new paper machine at the Swiecie mill in Poland or the Steti mill in the Czech Republic. The decision is subject "to agreement on the level of available government support".
If it chooses the Swiecie site, the machine will be owned and operated by subsidiary company Mondi Packaging Paper Swiecie.
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