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Mondi to Idle Machine

South Johannesburg, South Africa 28 August 2014 -- Mondi will idle one of two specialty paper machines at its Lohja mill in Finland. The paper is used to make release liners. Up to 75 employees will lose their jobs as a result of the closure, according to the company.

Mondi has announced it will shut down the PM 1 at its Lohja mill in southern Finland. The machine manufactures specialty paper to be used for release liner production and is to be idled at the end of June 2015.

Mondi explained that the machine was not profitable anymore, adding that cost saving measures and attempts to expand the product portfolio had not improved the situation. The company did not wish to disclose the production capacity of PM 1.

Mondi reported the second machine at Lohja will continue to operate without specifying if other, new products might be added to its portfolio. The company only said that "the current customer portfolio of PM 1 could be covered by other Mondi locations".

At the moment, coated and uncoated specialty kraft papers for the release liner and release base markets, the medical, food packaging and food service markets are produced at the Lohja mill. According to previous reports, the two machines have a combined production capacity of 70,000-80,000 tpy.

Mondi has informed employee representatives about the planned shutdown on 21 August. "The consultation process will start immediately", said the company in the last week of August, adding it will last six weeks. A maximum of 75 out of a total of 170 employees is estimated to be affected by the measure.


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