In a statement released yesterday (12 April), the packaging and paper group said that the mill would now focus on the strategic growth markets of luxury packaging, professional print, and technical and converting papers, “while utilising the strength of its asset base to deliver high quality and diversified products”.

As a result, however, one paper machine will be closed, and the capacity of the finishing lines will be streamlined. Four paper machines are operated at the Neusiedler mill, which currently has an annual paper capacity of around 300,000 tonnes.

“Unfortunately, the change in production capacity will inevitably have workforce implications and as such, Mondi has entered into consultations with its workforce at Neusiedler.”

While specifics on potential job losses were not disclosed by Mondi, Austrian newspaper NÖN reported that [the mill's] management had notified the AMS [Austrian Public Employment Service] “that they will register around 160 employees for dismissal as part of the early warning system”.

Additionally, an investment of €20m (£17.6m) has been approved to increase energy efficiency at the mill and to ensure the necessary upgrades to machines, infrastructure, and buildings.

This investment is also in line with Mondi’s MAP2030 sustainability commitments, which includes reducing greenhouse gas emissions in line with science-based targets.

In February Mondi posted sales on continuing operations up 28% last year, with an even bigger increase in operating profits at the group.