The company decided to postpone the €135m investment in new machine glazed (MG) speciality kraft paper machine after a careful review of market conditions, said Mondi CEO Peter Oswald.
Mondi Group will not increase production capacity for machine glazed (MG) kraft paper at the Czech site in Štetí by 90,000 tpy in 2019. The company announced yesterday its decision to postpone the €135m investment in a new MG kraft paper machine due to market conditions.
"While the proposed new machine remains an exciting investment opportunity, offering the lowest cost production of its sort in Europe, recently announced industry capacity expansions are expected to result in a market imbalance over the period in which the new machine was planned to come on line," said peter Oswald CEO and President of Mondi.
In February 2017, Mondi Group had announced that its company boards had approved the €470m investment in the Štetí mill to install a new kraft PM, new recovery boiler, rebuild the fibre lines and debottleneck the paper machines. The decision to postpone the kraft PM investment will reportedly have no impact on the other modernisation and upgrading projects at the site.
Find the entire article and any associated background information in EUWID Pulp and Paper issue 36/2017
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