LONDON (ShareCast) - (Sharecast News) - Paper and packaging group Mondi said on Friday that it has decided to permanently close its Stambolijski mill in Bulgaria following the fire there last month.
It said the fire caused extensive damage to the 100,000 tonne per annum brown kraft paper machine and stopped production at the site. However, thanks to "the swift and professional response" on the day, everyone on site remained safe.

"After evaluating the options for repairing the mill and the ongoing investment required for the mill to remain competitive into the future, Mondi has concluded that closing the mill and serving customers out of its network of other kraft paper mills is the best course of action overall," it said.

The decision will affect around 300 Mondi Stambolijski employees.

There is expected to be about €100m of net closure costs, mainly related to a non-cash asset impairment which Mondi will book as a special item.

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