Back on track – Hard work delivers result at the SCA-Obbola mill

Mondi has partnered with Adelaide Brighton Cement and Pope Packaging on the development of a new water-resistant paper bag called ‘Rain Barrier,’ made out of Mondi’s Advantage Protect White sack kraft paper, for the Australian construction market. Standout characteristics include its water repellent surface and high tensile strength in a wet environment. While a standard paper bag absorbs water, the qualities of the Rain Barrier bag, keeps water from seeping in, as it stays on the surface where it evaporates. The paper itself is rain resistant for up to six hours and can resist water ingress for up to five full days when stored in damp conditions.

Due to the prolonged weak profitability, Metsä Board, part of Metsä Group, plans to close its Tako mill as well as to improve the efficiency of its Kyro mill, and launches change negotiations at both mills and related operations. The negotiations will involve a total of approximately 360 employees and may lead to a reduction of up to 215 employees. The negotiations are expected to last at least six weeks. If the plan is implemented, production at Tako mill would end in 2025. The aim of the change negotiations at the Kyro mill is to improve the profitability of the mill and safeguard its operational conditions. Any decisions on personnel reductions and mill closure will only be taken after the change negotiations have been concluded. In recent years, the production of folding boxboard at Tako and Kyro mills has remained well below capacity due to the market situation, and the mills have had to implement several temporary layoffs. Due to weak market situation and rapidly rising costs, both mills have been loss-making in 2023 and 2024. The cost competitiveness of Tako board mill is particularly weakened by its high energy costs and the small size of its production lines. The development of the mill is limited by its exceptional location in the centre of the city of Tampere.

Total Boxboard production in June decreased one percent compared to June 2019. It was down one percent when compared to the same six months of 2019. The boxboard operating rate was 93 percent, up 1.1 points from June 2019 and up 0.9 points year-to-date Solid Bleached Boxboard production in June remained essentially flat (-0.4 percent) compared to June 2019. It was down three percent when compared to the same six months of 2019. Recycled Boxboard production in June decreased five percent compared to June 2019. It was down zero percent when compared to the same six months of 2019. Unbleached Kraft & Gypsum production in June increased four percent compared to June 2019. It was essentially flat (+0.4 percent) when compared to the same six months of 2019.