M-real to Discontinue Uncoated Fine Paper and Specialty Paper Production at Gohrsmuhle Mill

Feb. 24, 2012 - M-real announced that it has decided to discontinue uncoated fine paper and "unprofitable" specialty paper production at its Gohrsmuhle mill in Germany.

As a result of the measure, M-realís annual uncoated fine paper capacity will be reduced by approximately 120,000 tonnes and specialty paper capacity by 70,000 tonnes.

As many as 260 employees may be affected by the capacity closure, which will take place by the end of the second quarter of 2012.

M-real said that it will continue the Chromolux (cast coated board) business and is currently looking into possibilities to start up folding boxboard sheeting operations at the Gohrsmuhle site.

M-real also indicated that it is working with employee reps and local authorities to establish a business park in Gohrsmuhle with the intent to create new jobs at the site.

One of the alternatives is to find partners to the site to utilize the existing paper production and converting equipment as well as other site infrastructure. An example of the successful implementation of the business park concept is the Reflex mill, where M-real was able to divest business units to different companies saving more than 200 jobs, M-real said in a written statement.

"We have reached a very important step in our work to eliminate losses of our paper business. Opportunities to establish a business park in Gohrsmuhle are good," said Mikko Helander, CEO of M-real.

SOURCE: M-real

See related story:
- M-real to Close Alizay Mill in France, Stop UFS Production at Gohrsmuhle (10/18/2011)