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          Mayr-Melnhof Karton AG announces realignment of cardboard and folding box production at the Hirschwang site
          AUSTRIA (News release) -- A comprehensive examination of the framework conditions has shown that it is not possible to continue production on the board machine in Hirschwang an der Rax, Lower Austria, economically. The age and design of the machine (year of construction 1952) as well as increased market requirements prevent continued existence. 150 employees are affected, discussions about a social plan have already been started. The supply of customers from other plants of the Mayr-Melnhof Group is guaranteed.

          The result of the cartonboard division is expected to be impacted by around EUR 25 million, the greater part of which is due to depreciation.

          The Hirschwang site is to concentrate on the existing folding box production (Neupack) with 215 employees in the future. Investments to strengthen the location in this area are being examined.

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