M-real Sells Mill, Cuts 100 Jobs in France
July 1, 2006 - M-real yesterday said that it has sold its Pont Sainte Maxence paper mill in France to a German company Arques Industries.
The sale of the mill will result in about EUR 35 million sales loss, which is booked in the second quarter, the company said.
The annual capacity of the Pont Sainte Maxence mill is 120,000 tons and it employs 200 people. As a result of the deal, M-realís turnover will be decreased by about EUR 70 million.
The company also said that it has started an efficiency program at its French Alizay paper mill that will reduce the mill's workforce by about 100 people.
"The profitability of our French mills has been for a long period at a very unsatisfactory level. The efficiency program at Alizay and the sale of Pont Sainte Maxence will have a positive effect on M-realís result in the future," said Hannu Anttila, president and chief executive officer.
According to Anttila, M-real has now achieved the savings objective of EUR 200 million set for the savings program launched in the spring of 2004.
Planning of new savings program is already in progress, M-real added.