DURBAN - Andrew King yesterday was appointed to the helm of packaging and paper group Mondi, effective April 1, after the surprise resignation of former chief executive Peter Oswald last month rattled the market.
His tenure comes at a time the industry has seen reduced demand for paper and as the company focuses on producing more cardboard packaging.
King was Mondi’s chief financial officer (CFO) and has been the acting chief executive following Oswald’s resignation, which caught the market by surprise with the share price declining by more than 3percent on the day.
However, the share price has recouped some of the losses to trade 6percent higher to around R323.85 a share in the last month. Yesterday it closed at R323.50.
Oswald was credited for playing an instrumental role in simplifying the overall business and pointing it towards a sustainable future.
This comes after Mondi plc and Mondi Ltd merged last year to simplify its business model and announced an R8billion investment in South Africa in the next five years under Oswald’s leadership.
Mondi said Oswald would leave the group at the end of March and the process of appointing a new CFO was under way.
The group said a formal process to recruit King’s successor as CFO would start immediately and include external and internal candidates.
Mondi chairperson David Williams said the group was delighted that someone of King’s calibre has agreed to succeed Oswald as the chief executive.
“This appointment follows a formal review process, assessing both internal and external candidates, which convinced the board that he is the right person to lead the group. During his time with Mondi, Andrew has consistently demonstrated considered and effective leadership,” Williams said.
King has a long track record with Mondi, having been appointed to the executive committee in 2007 and to the board in 2008 in a career spanning 17 years.
Williams said King’s 17 years experience with Mondi in various strategy, business development and finance leadership roles will benefit the group enormously.
“He has been instrumental in defining the group’s strategic direction since listing and I am confident he will bring significant insight and leadership to the role of chief executive,” Williams said.
King said: “We (Mondi) have a clear strategic focus, robust business model and many talented and dedicated people. At Mondi’s core is our purpose of contributing to a better world by making innovative, sustainable packaging and paper solutions, with a strategy aimed at creating long-term value for the benefit of all our stakeholders,” King said.