Mondi announces restructuring into two businesses

The reorganisation, which will streamline and rebrand the existing businesses under the Mondi name, will allow the group to improve its visibility to customers, offer an improved geographic coverage, with operations in 46 countries and reduce its overhead costs. A new logo has also been introduced.

David Hathorn, CEO of Mondi says, "This represents a big step forward for the Mondi group, which has trebled its turnover in the last 6 years to approximately $7 billion (including pro-forma acquisitions made in 2004) to become a major player in both the paper and packaging markets. The growth of this dynamic business has been built on a formula for success that includes operational excellence, the aggressive acquisition of excellent central and eastern European assets and successful brownfield investments with improved technology. This means that Mondi today as a highly competitive cost base in Europe and South Africa, while it continues to ensure high quality standards.

"Looking forward, I believe that innovation will play a key role in the ongoing development of the group. Mondi invests heavily both in excellent people and processes to ensure that it constantly improves its value offering, exceeding both customer and shareholder expectations."

Mondi Business Paper

The new Mondi Business Paper group incorporates Neusiedler and Mondi South Africa. Mondi Business Paper is the leading producer of cut size paper in Europe and builds on the proud reputation for innovation, high quality products and leading brands. The CEO of the newly consolidated group, Gunther Hassler, brings a wealth of experience to this role having grown the Mondi business in Europe from its Austrian origins to current production of over two million tons of paper in six countries and serving markets on five continents. Major production facilities are located in Austria, Hungary, Israel, Slovakia, Russia and South Africa.

As a result of these changes, Andrew Thompson, who has played a critical role in the success of Mondi South Africa, will be stepping down as chairman and CEO of Mondi South Africa in December 2004. An announcement regarding Thompson's new role in the Anglo American group will be made shortly.

Mondi Packaging

The new Mondi Packaging group will be formed by a merger of the Frantschach group together with the existing Mondi Packaging group. Mondi Packaging will have 106 production plants in Europe and 18 in the Americas, Asia and Africa. This group will be active in five different segments - packaging paper, corrugated, bags, flexibles and coating. This allows customers access to an integrated packaging service with strong product development capability across all segments. The CEO of Mondi Packaging, Peter Oswald, has experience across the full range of the packaging group, having grown the converting business of Frantschach from a 5-site to a 60-site operation between 1995 and 2001 and served as the CEO of Mondi Packaging over the last three years.

Veit Sorger will be stepping down as CEO of Frantschach and will retain a number of Supervisory Board positions within the Mondi group, including deputy chairmanship of Mondi Business Paper and Mondi Packaging boards.