Mondi to close Czech containerboard mill

Mondi has begun a consultation over the proposed closure of a recycled containerboard mill in the Czech Republic that it acquired earlier this year.

The decision to close the facility, which is located in Ceske Budejovice and has annual production capacity of 100,000 tonnes, was a result of deteriorating market conditions in the European containerboard market and increased competition.

Mondi acquired the site as part of its deal to buy the German and Czech operations of Duropack.

The deal, which completed on 5 November but was announced in September, also brought two corrugated box plants into the Mondi business.

The company estimated that the total closure costs would be less than €3m.

In a statement on the decision, Mondi said that its strategy was “to focus on further developing its leading market position in corrugated packaging in the Czech Republic and emerging Europe.”

In its statement, Mondi said it would take “all reasonable action” to support affected employees, including providing an outplacement programme.