Mayr-Melnhof Karton AG (MM Group) has decided to significantly reduce the planned multi-year strategic investment project at its pulp and paper mill in Poland, MM Kwidzyn. The project will now focus investments on renewable energy, further pulp integration and product portfolio.
MM Group said the decision is due to “uncompetitive wood prices from the Polish State Forestry Monopoly and significantly reduced market demand for paper and cardboard products.”
In addition, MM Group has started discussions with employee representatives about a possible closure of the small paper machine (PM 3) for packaging kraft paper and about restructuring, which could lead to a reduction in the workforce of around 110 employees.
In April 2023, MM Group announced that it would invest EUR 660 million at MM Kwidzyn, which included a new recovery boiler and a new steam turbine; a second pulp line and a pulp dryer; and the conversion of paper machine 1 (PM1) from the production of copy paper to sack kraft paper.
MM Kwidzyn will continue pulp and virgin fiber board production unchanged. In the paper sector, the PM 1 and PM 2 paper machines will continue to produce up to 360,000 tonnes per year of uncoated fine paper and 40,000 – 80,000 tonnes per year of “IPACK™ Strong Pro” (packaging kraft paper). Since one of the fine paper machines has not been converted, no sack kraft paper will be produced in Kwidzyn.
MM Group is a leading global producer of cartonboard and folding cartons with an attractive offer in kraft papers and uncoated fine papers for various end applications. MM promotes sustainable development through innovative, recyclable packaging and paper products.
SOURCE: Mayr-Melnhof Karton AG (MM Group)