Mondi delays investment due to paper market imbalance

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Mondi delays investment due to paper market imbalance

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Published Date: 2017-08-30 | Source: Stephen Gunnion | Author: Stephen Gunnion

Mondi delays investment due to paper market imbalance

The paper producer says the machine would have offered the lowest cost production of its sort in Europe.

Mondi says it's postponing its €135 million investment in a new 90 000 tonne per annum machine glazed speciality kraft paper machine at its Steti mill in the Czech Republic.

The paper and packaging giant says it has undertaken a careful review of market conditions and believes by the time the new machine came on line, the kraft paper market would be in imbalance due to other players also expanding their capacity. However, it says the proposed new machine remains an exciting investment opportunity, as it would offer the lowest cost production of its sort in Europe.

Mondi CEO Peter Oswald says there's no change to the group's €335 investment in modernising the mill including rebuilding the fibre lines, removing bottlenecks from the existing packaging paper machines and a new recovery boiler, which is progressing as planned.

Shares in Mondi Ltd. closed 1.1% lower at R351.04, while London-listed Mondi Plc ended 1% down at R350.36.



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