05/01/2007 M-real starts negotiations on possible temporary layoffs at its Kangas mill. Because of a poor market situation for coated printing papers and the poor cost competitiveness of the Kangas mill, the production of the second paper machine (PM2) must be limited. The arrangement seeks to readjust production capacity to the current market situation and thus to improve profitability. On 5 January 2007, M-real made a proposal to start negotiations according to the Co-operation Act at the Kangas paper mill. The negotiations concern the majority of personnel working with paper machine PM2 as well as part of the mill's shared resources. According to current estimates, the need for temporary layoffs would be at the maximum seven weeks during the next six months. The statutory negotiations, involving approximately 85 persons, will begin on 10 January 2007. Further information: Petri Jantunen, Mill Manager, GSM +358 50 598 7623