2020 01 NEWS Mondi

Mondi shuts up shop in two UK site as crisis deepens

The trade press are reporting on the collapse of Mondi’s operation in the UK with the news the packaging company is to close its two remaining plants in this country.

Richard Stuart-Turner writing for Print Week said 208 jobs were at risk their plants at Deeside Industrial Park in Flintshire and its Nelson, Lancashire site by the second half of 2020. He said: “While the factory closures would put an end to Mondi's manufacturing in the UK, the business said it remains open to consider future opportunities "as and when they arise" in support of its strategic objectives.”

Ian Carrotte of ICSM Credit said: “It’s been an open secret in the business that this was on the cards as Mondi have cut their losses and looked to concentrate operations on the Continent. ICSM associates have noted some of the issues regarding the company for some weeks.”

The question is whether the closures are to do with the management of the firm is the issue, Brexit and the move to consolidate business in Europe or the overall decline in some aspects of the packaging industry due to a stagnant economy.

Packaging News’ Waqa Qureshi writing on the website reported: “Last October Mondi’s share price fell to their lowest level in almost three years as the paper and packaging giant reported softer paper demand and lower prices had hit its third-quarter revenue. Both affected plants create bags, pouches and laminates for the consumer industry.

“A ‘change in demand for the niche products’ was cited as the reason for the decline in business at the sites, and a 45-day consultation process is expected to begin imminently.

“Mondi closed its Scunthorpe flexible packaging site in May 201, although it has made significant investment in other European operations, including a €30m investment on a corrugated plant in Germany and a substantial investment at a Polish plant.”  

The firm’s chief executive Peter Oswald is to quit in March while the company still has 26,000 employees at around 100 production sites across more than 30 countries in Europe, Russia, North America and South Africa.

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For details for the work of the journalist Harry Mottram visit www.harrymottram.co.uk