Newsdetails

* Transfer of production to high performance facilities shall secure cost leadership
* Social plan for 50 employees finalized

Cost pressures and severe competition in the European folding carton industry necessitate continuous rationalization and cost cutting measures. For this reason, Mayr-Melnhof Packaging (MMP) concentrates its folding carton production on the most efficient sites with the aim of securing European cost leadership. In line with this development, production will be discontinued at the Hermann Schött GmbH printing plant, located in Mönchengladbach. The company employs 50 people and registered sales of approximately EUR 9.7 million in the year 2000.

Due to competitive pressures and high local production costs, maintaining a printing facility of this size is no longer possible. Order volumes will be transferred to the other German MMP-facilities. Together with the staff council, a settlement of interests as well as a social plan affecting all employees were finalized. The closing of the facility is expected to be completed by the beginning of 2002.

Mayr-Melnhof Packaging is Europe‘s largest producer of folding cartons, processing more than 320,000 tons of cartonboard annually.

For further information please contact:
Stephan Werba, Investor Relations Mayr-Melnhof Karton AG, Brahmsplatz 6, A-1041 Vienna Tel.: +43/ 1 50136 1180, Fax. +43/ 1 50136 1195;
E-mail: investor.relations@mm-karton.com ; Web: www.mayr-melnhof.com