(Reuters) -British packaging company Mondi said on Friday it will take an impairment charge of 100 million euros ($108.23 million) due to the closure of its Stambolijski paper mill after a fire.
The company will permanently close the Bulgarian mill after a fire broke out on Sept. 24 causing extensive damage.
“After evaluating the options for repairing the mill and the ongoing investment required for the mill to remain competitive into the future, Mondi has concluded that closing the mill and serving customers out of its network of other kraft paper mills is the best course of action overall,” the company said in a statement.
The site closure will affect around 300 employees.
Mondi, which has key operations in Europe, North America and Africa, reported muted third-quarter trading conditions earlier this month, partly hurt by more planned maintenance shutdowns.
It posted an underlying core profit of 223 million euros for the three months ended Sept. 30, down about 36% from the second-quarter period. ($1 = 0.9240 euros)
(Reporting by Yamini Kalia in Bengaluru; Editing by Savio D’Souza and Eileen Soreng)
