June 16, 2010 - M-real said that it has signed a Memorandum of Understanding regarding a partial divestment of its Reflex specialty paper mill in Duren, Germany to Metsa Tissue for approximately EUR 10 million.

M-real and Metsa Tissue are part of Finland's Metsaliitto Group.

The deal includes the mill's paper machine 5 and related real estate as well as certain infrastructure assets.

The Reflex mill has four paper machines, and in December 2009, M-real announced that it would close PM 1 and PM 5 during the first half of 2010.

According to M-real, Metsa Tissue is planning to convert the paper machine to produce grades that do not compete with M-real’s.

M-real expects the deal to close during the fourth quarter 2010.

SOURCE: M-real