8th Jul 2009 14:00
Mondi Limited(Incorporated in the Republic of South Africa)(Registration number: 1967/013038/06)JSE share code: MND ISIN: ZAE000097051Mondi plc(Incorporated in England and Wales)(Registration number: 6209386)JSE share code: MNP ISIN: GB00B1CRLC47
LSE share code: MNDI
As part of the dual listed company structure, Mondi Limited and Mondi plc (together 'Mondi Group') notify both the JSE Limited and the London Stock Exchange of matters required to be disclosed under the JSE listings requirements and/or the Disclosure and Transparency and Listing Rules of the United Kingdom Listing Authority.
8 July 2009
Mondi organisational alignment
Mondi today confirmed that it has entered into consultations with staff at its Merebank site, as well as with the relevant unions, regarding the proposed mothballing of its PM32 paper machine (representing a 120 000 tonne capacity reduction per annum) as well as the reorganisation of its newsprint and paper production operations. This is in response to a strong decline in sales margins and low market prices in the fine paper business and a reduction in international selling prices of Newsprint.
The remaining two fine paper machines, PM31 and PM33 have sufficient capacity to meet market demand in the current conditions.
Following completion of the consultation process, in total approximately 240 employees may be affected by this organisational alignment, which represents around 4.1 percent of Mondi's permanent employee complement in South Africa.
Mondi advised that it will offer support to employees, in addition to severance packages, subject to consultation with staff and their representatives.
Contact:Kerry CrandonGroup Communications ManagerMondiTel: +27 11 994 5425E-mail: [email protected] BrugmanPR Representative for MondiFinancial DynamicsTel: +27 11 214 2415Email: [email protected] Mondi Group
Mondi is an international paper and packaging group and in 2008 had revenues of €6.3 billion. Its key operations and interests are in Western Europe, emerging Europe, Russia and South Africa.
The Group is principally involved in the manufacture of packaging paper and converted packaging products; uncoated fine paper; and speciality products and processes, including coatings and consumer flexibles.
Mondi is fully integrated across the paper and packaging process, the growing of wood and manufacture of pulp (including recycled materials) and paper to the converting of packaging papers into corrugated packaging and industrial bags.
Mondi has production operations across 35 countries and had an average of 33,400 employees in
2008. www.mondigroup.com
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