Paper packaging company Mondi Plc's chief executive officer is stepping down after nearly three years in the role, a move that comes at time when the industry is going through a major change and grappling with high costs.
The company said on Friday that CEO Peter Oswald would be replaced by Chief Financial Officer Andrew King on an interim basis. King will take over on March 31 and keep the role until a successor is appointed, the company said.
The FTSE 100 firm did not disclose the reason for Oswald's sudden departure.
Changing Course
A shift to online reading has reduced the need for newsprint, but the sector is trying to offset that by catering to increased demand for shipping boxes from e-commerce companies.
However, Mondi, like its peers Smurfit Kappa Group Plc , Sappi Ltd and DS Smith Plc, faces high fibre costs that are weighing on profits.
Mondi's third-quarter earnings slumped 18% on sluggish demand and softer prices for key paper grades.
Finnish paper firm Stora Enso, one of the world's largest pulp, paper and packaging board makers, said in October that geopolitical uncertainties would dampen demand and prices in the fourth quarter.
Oswald oversaw Mondi's shift from being mainly a producer of printing paper into a packaging manufacturer for consumer goods.
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