Mondi permanently closes Bulgaria paper mill following fire disaster

BULGARIA – British packaging and paper company Mondi has decided to permanently close its Stambolijski paper mill in Bulgaria following a severe fire in September.

The disaster damaged the facility’s 100,000-tonne-per-year brown kraft paper machine, halting production indefinitely. Fortunately, due to the swift and professional response from the team on-site, no injuries were reported.

After carefully assessing the repair options and the significant investment required to keep the mill competitive in the long term, Mondi concluded that the best solution would be to shut down the facility. Customers will now be served by Mondi’s network of other kraft paper mills.

The closure will impact around 300 employees at the Stambolijski site.

“We understand that this is a challenging period for our employees and the local community. We are committed to offering comprehensive support and working closely with unions and the works council to find the best possible solutions for those affected,” said Roman Senecky, Chief Operating Officer of Kraft Paper at Mondi.

Sonoco shuts down two paper mills in Greece

In a similar trend, US packaging giant Sonoco announced the closure of two paper mills in northern Greece earlier this year.

Sonoco Greece S.A., a subsidiary of Sonoco Products Co., will permanently cease operations at its facilities in Thessaloniki and Kilkis.

The announcement, made by executives at Sonoco Alcore Sarl—Sonoco’s European division based in Luxembourg—will leave 90 employees out of work.

According to the company’s leadership, the decision was primarily driven by soaring energy costs, which made continuing operations unsustainable.

The Greek subsidiary is scheduled to close by May 31, following the completion of pending orders.

This closure represents a significant economic setback for the local region and highlights industries’ broader challenges amid rising operational expenses.

Despite a positive turnover performance reported on the Athens Stock Exchange for fiscal year 2021, with a 34% increase, Sonoco Greece faced a pre-tax and interest loss of €350,761 (US$379,241), and a post-tax loss of €540,335 (US$584,208).

Sonoco Greece has had a nearly 30-year presence in the country, previously operating four plants nationwide. The parent company, Sonoco Alcore Sarl, manages 70 manufacturing sites across 18 European countries.

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