Mpact declares force majeure at Springs operation

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Mpact declares force majeure at Springs operation

Published Date: 2020-09-17 | Source: Stephen Gunnion | Author: Stephen Gunnion

Mpact declares force majeure at Springs operation

The paper and packaging group says the impact on earnings remains uncertain as it waits for power to be restored to its paper mill.

Mpact has declared force majeure as its paper mill in Springs has been unable to produce after it was left without electricity a month ago.

The paper and packaging group said it was left without power on 19 August following an explosion and fire at the municipal sub-station in Ekurhuleni, which supplies the mill. Although it was initially advised by the Ekurhuleni Municipality that electricity supply would be restored to the mill by no later than 7 September this hadn't happened.

The mill produces coated white top cartonboard used for packaging foodstuffs, and speciality core board used for toilet rolls, paper reels and cling wrap rolls amongst others. It has a production capacity of approximately 140,000 tons a year and its total revenue last year was about R1.3 billion. While the power interruption was covered by Mpact's insurance policy, it said the impact on this year's earnings remained uncertain.

Mpact's shares fell 8.2% to R7.25 yesterday.





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