Today's Labour News

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MondiBusinessLive reports that packaging and paper group Mondi said on Friday it would be ceasing production from one of its uncoated fine paper machines at Merebank, Durban.  

This would take place in the second half of its financial year.  The decision could lead to job losses, but Mondi CEO Peter Oswald said on Friday the consequences for the workforce were still under discussion.  In addition to possible retrenchments, the company was considering absorbing affected employees into other areas within the business.  The matter has yet to be finalised.  Oswald attributed the decision to declining margins on unintegrated paper production following the rapid rise in hardwood pulp input costs.  Commenting generally on results, Oswald said:  "We benefited from good demand across our packaging businesses as well as higher average selling prices, while remaining focused on initiatives to drive performance and mitigate inflationary pressures on our cost base.  We saw a strong operational performance across the pulp and paper businesses, with the exception of the extended shut at our Richards Bay mill [in SA]".

  • Read this report by Siseko Njobeni in full at BusinessLive


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