Mondi offloads European paper business

5th May 2010 08:26

Paper and packaging group Mondi has reached agreement to sell its central and eastern European paper supplier Europapier to the Austrian paper group Heinzel for €60m.Mondi said the proceeds would be used to reduce its debts. Chief executive David Hathorn said the sale would allow Mondi to focus on its 'core business.Europapier posted losses before tax of €6.5m in the year to December 31, Mondi said, adding that it will book a loss of €25m on the disposal.