On April 26, MM announced the approval of a comprehensive investment project to increase the long-term competitiveness of its largest board and paper mill MM Kwidzyn in Poland. Significant energy and CO2 cost reductions as well as increased pulp integration and the entry into the market for sack kraft paper are to set the mill up for sustainable future success. The implementation of the investment project of around EUR 660 million, which is subject to certain conditions, has been planned for the years 2023 - 2026 with disbursements until 2027. Due to current market conditions, the start of the project has been postponed to 2024, according to MM Group.
Peter Oswald, MM CEO, commented the company’s first quarter results: “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.”
“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.”