Mayr-Melnhof Karton announced that it will cease cartonboard production at its paper mill in Hirschwang, Lower Austria. The mill operates one paper machine, BM4, which has the capacity to produce 80,000 tons per year of recycled cartonboard in a range of grammages from 400 - 700 gsm.
In a written statement, Mayr-Melnhof said, "A comprehensive examination of the framework conditions has shown that it is not possible to continue production economically on the board machine in Hirschwang, Lower Austria. The age and design of the machine (year of construction 1952) as well as increased market requirements are hurdles to the continuation."
The machine closure will affect 150 employees, and Mayr-Melnhof said talks have already started on a social plan.
Mayr-Melnhof also has a folding carton plant at the Hirschwang site — Neupack — which will continue to operate, and the company said that it is examining future investments to strengthen the business.
Neupack has 215 employees and produces mainly offset-printed folding cartons with a high degree of finishing, as well as packaging made of laminated corrugated board (B, E and F flute). In addition to offset printing, Neupack specializes in finishing with UV colors and coatings, inline applications, relief embossing and special gluing.
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