Mondi PLC (LSE:MNDI) has said the closure of one of its paper mills following a fire last month will cost it €100 million (£83.4 million).
The Stambolijski mill in Bulgaria will be shut for good after the fire in late September, Mondi said on Friday, affecting around 300 employees.
Production at the site had since stopped due to extensive damage on a 100,000-tonne per annum brown kraft paper machine, the company noted.
“Mondi has concluded that closing the mill and serving customers out of its network of other kraft paper mills is the best course of action overall,” it added.
This comes “after evaluating the options for repairing the mill and the ongoing investment required for the mill to remain competitive into the future”.
Everyone at the site was said to have remained safe during the fire, which took place on September 24.
Shares in the FTSE 100 firm were flat on Friday.