The Weybridge, England-based packaging firm said the decision to close the paper mill will affect around 300 employees at the paper mill, with around EUR100 million of net closure costs expected.

The fire, which broke out on 24 September, damaged large parts of the paper machine and forced the company to stop production.

"The fire caused extensive damage to the 100,000 tonne per annum brown kraft paper machine and stopped production at the site. Thanks to the swift and professional response on the day, everyone on site remained safe," Mondi said.

"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." ■