Mondi to shut down one paper machine, realign product portfolio at Neusiedler plant

Paper machine closure is part of Neusiedler's strategic focus on growth markets such as luxury packaging, graphic printing and papers for technical applications, says Mondi.

Mondi has announced the closure of one of the four paper machines at the group's Neusiedler facility in Austria. In addition, the capacities in the finishing department are to be bundled.

The Neusiedler site consists of the Kematen and Theresienthal mills. So far, Mondi Neusiedler facility has mainly produced woodfree uncoated papers as well as recycled graphic papers. The closure was part of a strategic realignment of the Neusiedler plant with the aim of increasing the site's focus on papers for luxury packaging, graphic printing and technical applications, Mondi explained.

To support the realignment, an investment of €20m has been approved to increase the energy efficiency of the plant and to ensure the necessary upgrades to machinery, infrastructure and buildings, the company announced.

According to Mondi, capacity cuts in production and finishing will result in lower employment levels at the Neusiedler plant. The company said it already started consultation with the employee representatives at the Neusiedler site, but did not specify how many jobs are affected. Media outlets in Austria report that up to 160 jobs could be axed.

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