Declining demand for graphic paper and higher costs force Mondi Neusiedler to reorganise Uncoated Fine Paper division in Austria.
The management of Mondi Neusiedler GmbH and the company's works council signed an agreement governing the reorganisation of the company's Uncoated Fine Paper division in Austria. Around 100 employees will be affected by losing their jobs in the course of the next few weeks. In addition, numerous company agreements on wages and salaries were renegotiated. At present Mondi Neusiedler GmbH has 700 employees at the two mills Theresienthal and Kematen.
Reports indicate that the financial situation of the paper mills, which are in part integrated, was negatively influenced by the lasting decline in the market for graphic paper, especially in western Europe, and rising raw material and energy costs. Consequently Mondi Neusiedler GmbH recorded negative results in the past three years. Peter Orisich, CEO Uncoated Fine Paper, Mondi Europe & International, hopes that the measures will restore the profitability of the two Theresienthal and Kematen plants.
Earlier on Mondi reported that Neusiedler would primarily concentrate on producing premium products in the future, whereas the production of B and C grade copy paper would be moved to other Mondi facilities.