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Mpact's Springs Mill set to close amid rand strength, global cartonboard oversupply

Inside the Springs paper mille

Inside the Springs paper mille

Photo by Creamer Media's Donna Slater

3rd February 2026

By: Creamer Media Reporter

     

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JSE-listed Mpact plans to halt operations at its Springs Mill – the only producer of cartonboard in South Africa – once all open orders have been completed towards the end of March.

The company cites a sustained deterioration in the mill's competitiveness as the reason for the planned closure of the mill, which employs 377 people and has a production capacity of about 137 000 t/y of white-lined coated cartonboard, laminated board and boards for industrial applications, primarily using recycled fibre sourced from Mpact Recycling.

Mpact points out that the Springs Mill competes directly with imports from several countries and that there is a significant overcapacity in the global cartonboard market that is likely to persist for the foreseeable future.

In addition, with the stronger rand, the mill's largest customers are able to import cartonboard at prices about 20% below the mill's cost of production.

"This has led to a decline in demand for the mill's products and, in January, the mill's largest customer notified Mpact that it will no longer procure its cartonboard requirements through the mill and will instead procure through imports going forward. Despite extensive efforts, Mpact is unable to bridge the cost gap and unlikely to secure sufficient demand from other customers at sustainable prices," the company notes.

Mpact has started a Section 189A process in terms of the Labour Relations Act.

 

Edited by Chanel de Bruyn
Creamer Media Online Managing Editor

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