Mondi has completed the acquisition of Duropack's operations in Germany and the Czech Republic on 5 November 2012. The company now proposes the closure of the recycled containerboard mill Duropack Bupak Papirna in Ceske Budejovice.
Mondi is planning to shut down the 100,000 tpy recycled containerboard mill in Ceske Budejovice due to deteriorating market conditions in the European containerboard market and increased competition. According Mondi, the former Duropack Bupak Papirna containerboard mill is no longer competitive. Total closure costs are estimated to be under €3m.
In a statement, Mondi said, the Group's strategy is to focus on further developing its leading market position in corrugated packaging in the Czech Republic and emerging Europe. Furthermore, Mondi said it will take all reasonable action to support affected employees including providing an outplacement programme and will keep employees, customers and other stakeholders informed of the process.
A time frame for the project has not yet been communicated. Consultations with employee representatives about the closure of the Ceske Budejovice containerboard mill have already begun.
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