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The Styrian Mayr-Melnhof Karton will invest 100 million euros in the renovation of the Frohnleiten site north of Graz over the next two years. CEO Peter Oswald announced this at an online press conference. Money flows mainly towards the digitization and effectiveness of existing machines. All 570 employees should keep their jobs, Oswald said. Production is expected to increase by around 10 percent.
“This is the largest investment the MM Group has ever made in Austria. It is courageous and historic in a difficult market environment,” said Oswald. The investment will secure the location and existing jobs. New jobs are unlikely to be added, but modernization should make things easier for employees. However, at the Hirschwang plant in Lower Austria, job cuts were only announced in early November.
With its investment premium, the federal government supports the project in Frohnleiten with EUR 4.4 million, Oswald said when asked. Economy Minister Margarete Schramböck (ÖVP) described MM Karton as an “excellent example” for companies that are crisis-proof and do not leave their investment plans in the drawer in the days of Corona.
For the investment premium made available by the federal government, around 53,000 requests have already been made with a volume of around 22,000 million euros, he said at the press conference. More than half of the applications deal with sustainability and digitization issues.
The planned investments at Frohnleiten are primarily aimed at reducing water and energy consumption in waste paper processing. New production technologies in cardboard production are intended to increase product quality and capabilities as a prerequisite for possible future uses of recycled cardboard. The logistics area is also being modernized to speed up the movement of goods.
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© Mayr-Melnhof Karton AG In the picture: The site of Frohnleiten.
According to its own statements, the MM Group is the largest European producer of cardboard and folding boxes. More than 1.7 million tonnes of cardboard are produced annually, a third of them at the Frohnleiten site. The MM Group employs around 10,000 people worldwide, around 1,800 of them in Austria. (off / red)
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