Paper and packaging group Mondi has issued a warning about rising costs stemming from the Iran war, as it proceeds with the closure of six factories across Europe and job cuts. The FTSE 100 company, headquartered in Weybridge, Surrey, is implementing pricing actions to offset increased expenses driven by the Middle East conflict and soaring oil and energy prices.
Factory Closures and Job Losses
Mondi announced that 450 jobs will be eliminated this year, following plans revealed earlier this month to shut three additional plants in Hungary, Poland, and Germany. These closures add to three recently shuttered facilities in Turkey, Hungary, and Germany. The company described these moves as “targeted actions to strengthen our competitive advantage” and part of a broader cost-cutting effort.
Challenging Trading Conditions
The group, which operates globally including a factory in Birmingham, reported that trading remained “challenging” in the first quarter of 2026. In a trading update, Mondi revealed a 27% year-on-year decline in underlying earnings, which fell to €212 million (£184 million), down from €214 million (£186 million) in the previous quarter.
Pricing Actions to Offset Costs
Mondi stated: “Across the business, we have 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.”
Mondi employs approximately 24,000 people across 100 production sites in more than 30 countries.
