M-real to Expand Folding Boxboard Capacity at Aanekoski and Kyroskoski Mills

Feb. 10, 2011 (Press Release) - M-real Corporation, part of Metsaliitto Group, plans to increase the annual folding boxboard capacity of Aanekoski and Kyroskoski mills in total by about 70,000 tonnes. The combined value of the planned investments in Aanekoski and Kyroskoski is approximately EUR 30 million. The Kyroskoski investment is planned to be completed in late 2011 and the Aanekoski investment in spring 2012.

Related to the planned investment M-real will start statutory negotiations at the Aanekoski board mill on 18 February 2011 covering the mill workers in total of about 130 people. The maximum personnel reduction need is estimated to be 10 people. Kyroskoski investment is expected to have no personnel impact.

Following the planned investments the annual folding boxboard production capacity at Aanekoski mill would be approximately 240,000 tonnes and approximately 190,000 at Kyroskoski mill. The new production volumes are planned to be sold to food packaging purposes. In addition to these planned investments M-real has good potential to further increase the capacity of Kyroskoski and Aanekoski mills if the market situation so requires.

ďDemand growth for M-realís ecological and safe virgin fibre board has in food packaging been faster than expected and the expansion of Simpele millís capacity that will be implemented in spring 2011 is not enough to satisfy the demand. The best way to increase our production is to debottleneck the current board machines in moderate steps. Our target is to continue the profitable growth of our cartonboard business,Ē says CEO Mikko Helander.

M-real has announced plans to increase the annual folding boxboard capacity in total by about 150,000 tonnes during 2011-2012 including the investments at Simpele, Aanekoski and Kyroskoski mills. Thus, M-realís total folding boxboard capacity would increase to about 935,000 tonnes per annum.

SOURCE: M-real