Mondi plans to shut UK facility as Q3 profit falls
International paper and packaging group Mondi has reported a third quarter 2011 underlying operating profit of €136m, compared to €175m in the second quarter this year.
International paper and packaging group Mondi has reported a third quarter 2011 underlying operating profit of €136m, compared to €175m in the second quarter this year
Mondi attributed the fall to the company’s third quarter maintenance shuts, softer trading environment and the impact of destocking which cost the packaging maker nearly €20m.
The comapny also announced that the industrial bags facility in Aberdeen, UK, is expected to be closed, with associated impairment and restructuring costs of about €5m as part of the continued optimisation of the group’s production base.
On 3 October, the group already disposed of its Unterland flexible packaging business to Sun European Partners at a loss of €4m.
Additionally, the company is set to restructure the coatings and consumer packaging business during the fourth quarter resulting in costs of about €6m.