Mondi to close Stambolijski mill in Bulgaria after fire.
Paper and packaging group Mondi said on Friday that it has decided to permanently close its Stambolijski mill in Bulgaria following the fire there last month.
Mondi
25 October 2024 11:07:47
Source: Sharecast
It said the fire caused extensive damage to the 100,000 tonne per annum brown kraft paper machine and stopped production at the site. However, thanks to "the swift and professional response" on the day, everyone on site remained safe.
"After evaluating the options for repairing the mill and the ongoing investment required for the mill to remain competitive into the future, Mondi has concluded that closing the mill and serving customers out of its network of other kraft paper mills is the best course of action overall," it said.
The decision will affect around 300 Mondi Stambolijski employees.
There is expected to be about €100m of net closure costs, mainly related to a non-cash asset impairment which Mondi will book as a special item.
Halifax is not responsible for the content and accuracy of the Markets News articles. We may not share the views of the author. Understand the risks, please remember the value of your investment can go down as well as up and you may not get back the full amount you invest. We don't provide advice so if you are in any doubt about buying and selling shares or making your own investment decisions we recommend you seek advice from a suitably qualified Financial Advisor. Past performance is not a guide to future performance.
