Mpact's Springs Mill set to close amid rand strength, global cartonboard oversupply
JSE-listed Mpact plans to halt operations at its Springs Mill – the only producer of cartonboard in South Africa – once all open orders have been completed towards the end of March.
The company cites a sustained deterioration in the mill's competitiveness as the reason for the planned closure of the mill, which employs 377 people and has a production capacity of about 137 000 t/y of white-lined coated cartonboard, laminated board and boards for industrial applications, primarily using recycled fibre sourced from Mpact Recycling.
Mpact points out that the Springs Mill competes directly with imports from several countries and that there is a significant overcapacity in the global cartonboard market that is likely to persist for the foreseeable future.
In addition, with the stronger rand, the mill's largest customers are able to import cartonboard at prices about 20% below the mill's cost of production.
"This has led to a decline in demand for the mill's products and, in January, the mill's largest customer notified Mpact that it will no longer procure its cartonboard requirements through the mill and will instead procure through imports going forward. Despite extensive efforts, Mpact is unable to bridge the cost gap and unlikely to secure sufficient demand from other customers at sustainable prices," the company notes.
Mpact has started a Section 189A process in terms of the Labour Relations Act.
Article Enquiry
Email Article
Save Article
Feedback
To advertise email advertising@creamermedia.co.za or click here
Comments
Projects
Latest News
Showroom
ATI systems comprises five divisions: electrical assemblies, drives and controls, feedback sensors, enclosures, and strip guiding.
VISIT SHOWROOM
For over 30 years, Werner South Africa Pumps & Equipment (PTY) LTD has been designing, manufacturing, supplying and maintaining specialist...
VISIT SHOWROOM
Press Office
Announcements
What's On
Subscribe to improve your user experience...
Option 1 (equivalent of R125 a month):
Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format
Option 2 (equivalent of R375 a month):
All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors
including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.
Already a subscriber?
Forgotten your password?
Receive weekly copy of Creamer Media's Engineering News & Mining Weekly magazine (print copy for those in South Africa and e-magazine for those outside of South Africa)
➕
Recieve daily email newsletters
➕
Access to full search results
➕
Access archive of magazine back copies
➕
Access to Projects in Progress
➕
Access to ONE Research Report of your choice in PDF format
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation
