MM Group has postponed the commissioning of its largest board and paper mill in Poland to 2024 due to European market conditions. The group had announced an investment of EUR 660 million for 2023-26, with disbursements until 2027.
Aug 15, 2023
MM Group announced in April the approval of a comprehensive investment project to increase the long-term competitiveness of its largest board and paper mill MM Kwidzyn, Poland. The commissioning of the project has been postponed to 2024 due to prevalent market conditions.
Significant energy and CO2 cost reductions, increased pulp integration, and the entry into the market for sack kraft paper are to set the mill up for sustainable future success. An investment of around EUR 660 million was planned for the project for the years 2023 – 2026, with disbursements until 2027.
Mr. Peter Oswald, CEO of MM Group, commented, “The development of the MM Group in the 1st half-year reflects the continuing weak demand in the cartonboard and paper sector after the record year 2022. As already communicated in mid-June, the significant decline in results is mainly attributable to the weak volume development in the division MM Board & Paper. In contrast, the division MM Packaging was able to record an overall positive performance with the successful integration of last year’s acquisitions in the resilient pharmaceutical packaging sector and factoring in one-off restructuring costs.”
He further stated, “The historically unusual decline in volumes on the European cartonboard market was higher than expected, mainly as a result of the restraint in consumer spending due to inflation as well as reduction of high inventories at customers.”