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.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
"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.
NR
-
UK-US trade deal announced: US cuts tariffs on UK car imports to 10%Keir Starmer and Donald Trump have announced a UK-US trade deal, but the US president has refused to lift baseline tariffs on most UK goods. What does it mean for the UK?
-
How to use mid-caps to diversify from the USMedium sized companies are overlooked by investors but could offer an attractive ‘sweet spot’. We consider the case for mid-caps amid market volatility.
