M-real to close paper production at Simpele mill

The statutory cooperation negotiations related to the possible closure of the Simpele paper production will be commenced on 24 September. The planned personnel reduction is maximum 80 people, according to M-real.The potential transfer of the production of speciality paper from the Simpele mill in Finland to Gohrsmühle mill in Germany would improve M-real's operating result by approximately four million Euros per year. As a result of the planned Simpele paper machine closure, M-real's Consumer Packaging's fourth quarter result will as non-recurring item include twelve million Euros write offs. Related non-recurring cash costs, if any, will be determined once the negotiations with employees arecompleted, at the latest by 5 November.The planned closure would reduce the European annual speciality paper capacity by about 50,000 tons.“M-real is further focusing its speciality paper business to packaging related grades. The planned transfer of Simpele speciality paper production would strengthen thecompetitiveness of Gohrsmühle mill and improve M-real's profitability. M-real is planning to increase the share of speciality grades in Gohrsmühle further,” explains M-real's CEO, Mikko Helander.