Mondi plc, a global leader in sustainable packaging and paper, has restructured its business to strengthen agility and performance, organizing its global operations into two core divisions: Corrugated Packaging and Flexible Packaging. Effective 1 October 2025, the new structure combines Uncoated Fine Paper with Corrugated Packaging to create a more unified business unit, while Flexible Packaging remains unchanged. The reorganization aims to accelerate decision-making, reduce costs, and leverage synergies across Mondi’s integrated pulp and paper mills, reinforcing the company’s ability to deliver customer-focused solutions and improved returns.

The announcement accompanies Mondi’s Q3 2025 trading update, which reported underlying EBITDA of €223 million, including a €20 million forestry fair value gain. The company continues to navigate a subdued trading environment with weak demand and lower paper selling prices impacting both Corrugated and Flexible Packaging results. Planned maintenance shutdowns and softer sales volumes led to lower earnings compared to the previous quarter, though Mondi’s converting businesses remained stable. “We are relentlessly focused on managing the controllables,” said Andrew King, CEO of Mondi Group. “Our new organizational structure, combined with our ongoing cost optimization and efficiency initiatives, will ensure we are well-positioned to capture growth when market conditions improve.”

Mondi continues to strengthen its competitive position through operational efficiency and integration initiatives, including the successful ongoing integration of the Schumacher acquisition. The company has identified €32 million in expected cost synergies, an increase of €10 million from initial estimates, to be realized over three years. Following the completion of its recent investment cycle, Mondi is now prioritizing productivity ramp-up, cash generation, and return on capital. The company’s major expansion projects, all completed on time and on budget, are expected to contribute around €30 million in incremental EBITDA for FY2025.

While the feasibility study for a new sack kraft paper machine in Hinton, Canada, remains strategically attractive, Mondi has deferred the investment due to current market conditions. The company’s near-term focus remains on maintaining efficiency, preserving value, and preparing for recovery in global packaging markets. King concluded, “We remain confident in the long-term growth fundamentals of sustainable packaging. With a cost-advantaged, well-invested asset base and a more streamlined organization, Mondi is poised to deliver stronger returns and capture future opportunities as the market stabilizes.”