Paper and packaging group Mondi has said that following the completion of its acquisition of Duropack's operations earlier this month, it has subsequently entered into discussions with employees about the proposed closure of the one hundred thousand tonne recycled containerboard mill in the Czech Republic.
The company said that the decision follows the deterioration in market conditions in the European containerboard market and increased competition, which has negatively affected the mill's ability to remain competitive.
The costs of the closure are expected to be less than €3.0m.
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"The group's strategy is to focus on further developing its leading market position in corrugated packaging in the Czech Republic and emerging Europe," the company said.
"Mondi will take all reasonable action to support affected employees including providing an outplacement programme and will keep employees, customers and other stakeholders informed of the process."
The share price rose 2.0% to 637.50p by 14:09.
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