Dunaujvaros, Hungary 31 October 2012 -- Hamburger Containerboard, a member of the Prinzhorn Group, has announced a definitive closure of the recycled containerboard mill in Frohnleiten, Austria, by the end of April 2013. The company blamed its decision on existing overcapacities in Europe and intensified competition on international paper markets, which do not allow for a cost-effective production at Frohnleiten.

The Frohnleiten mill runs two paper machines offering a combined capacity of 170,000 tpy of brown recycled containerboard. The first paper machine will stop production on 1 November. The second machine will remain operative until the definitive closure of the Frohnleiten facility on 30 April next year. Some 100 employees will be affected by the closure.

"The specific equipment in Frohnleiten with a total capacity of 170,000 tonnes, produced on two small paper machines with only 2.5 m working width, is not able to compensate long term cost disadvantages on the market. [...] Moreover, the current situation in the business sector does not give reason to expect a turnaround: Overseas markets cannot be supplied cost-effectively because of the euro-/dollar-exchange rate. The same applies to exports to Russia and Turkey", the company stated in a press release on 30 October.