Paper and packaging group Mondi has issued a warning over rising costs linked to the Iran war, as it continues to close factories and cut jobs across Europe. The FTSE 100 company, headquartered in Weybridge, Surrey, said it is taking pricing actions to offset higher expenses resulting from the Middle East conflict and surging oil and energy prices.
Factory Closures and Job Losses
Mondi announced that 450 jobs will be axed this year following plans to shut three more factories in Hungary, Poland, and Germany. These closures add to three recently announced in Turkey, Hungary, and Germany. The group described these as “targeted actions to strengthen our competitive advantage” and part of a broader cost-cutting strategy.
Mondi employs around 24,000 people across 100 production sites in over 30 countries, including a factory in Birmingham. The company reported that trading remained “challenging” in the first quarter of 2026.
Pricing Actions to Counter Rising Costs
In a trading update, Mondi stated: “Across the business, we have however experienced increased energy, raw material and logistics costs. We are actively responding with pricing actions. While there is a customary lag, we expect the impact of these price increases to take full effect in the third quarter of this year.”
The group reported a 27% year-on-year decline in underlying earnings to 212 million euro (£184 million), down from 214 million euro (£186 million) in the previous three months. Shares fell 5% in early trading on Friday.
Andrew King, chief executive of Mondi, commented: “Despite the uncertain outlook, we continue to focus on what we can control – driving operational excellence, rigorous cost and margin discipline, optimising our production footprint and focused cashflow management. These actions underpin our confidence in our ability to navigate the current headwinds.”
