M-real Corporation Stock Exchange Release 8 March 2012 at 9.40 EET
M-real Corporation, part of Metsä Group, has concluded the information and consultation process concerning the planned closure of the Alizay mill in France. In order to eliminate the severe losses M-real started the negotiations with the workers’ representatives in October 2011. M-real released a stock exchange release on 18 October 2011 concerning this plan.
Following the conclusion of the negotiations, M-real can take the final decisions to close the Alizay mill. As a result, M-real’s annual uncoated fine paper capacity will be reduced by approximately 310,000 tonnes. The related personnel reduction, which is 330 people at most, will be implemented by the end of the second quarter of 2012. The level of redundancy and other related costs are in line with the cost provisions made in the last quarter of 2011.
A voluntary reindustrialization project is planned to be started in Alizay. The project will be carried out jointly by M-real, workers’ representatives and local authorities. The target of the project is to create new jobs and businesses at the Alizay site.
“This is a very material step in our efforts to eliminate losses of our paper business. We are now according to our strategy very strongly focused on the profitable paperboard business that we will further strengthen in the future,” says M-real’s CEO Mikko Helander.
M-REAL CORPORATION
For further information, please contact:
Matti Mörsky, CFO, tel. +358 10 465 4913
Seppo Puotinen, Head of Paper and Pulp business area, tel. +358 10 465 4913