M-real to permanently close its Alizay pulp mill

M-real Corporation Stock Exchange Release on 14 July 2010 at 12

M-real to permanently close its Alizay pulp mill

M-real Corporation, part of Metsäliitto Group, announced on 16 December 2009
its plan to permanently shut down the Alizay pulp mill. The plan is a part of
the EUR 80 million profit improvement programme for the year 2010. At the same
time, M-real initiated the information and consultation process concerning the
possible permanent shutdown of the pulp mill. 

M-real has now finalised the information and consultation process. The
necessary economic preconditions for continuing the pulp mill's operations
could not be found. The pulp mill will be permanently closed and it will
involve a reduction of maximum 89 vacancies. 

Due to the finalised information and consultation process, M-real books as
additional non-recurring cost provision approximately EUR 4 million in the
Market Pulp and Energy business area's 3Q 2010 operating result. M-real has
earlier booked as non-recurring cost provision approximately EUR 13 million in
the Market Pulp and Energy's 4Q 2009 operating result related to the possible
pulp mill closure. 

“The final closure of the Alizay pulp mill is a very important profit
improvement measure for M-real. We will continue measures to improve the Alizay
paper mill's profitability,” says Mikko Helander, CEO of M-real. 

M-REAL CORPORATION

For further information, please contact:
Sanna Väisänen, IR and Communications Manager, tel. +358 50 355 7990