M-real to Sell Reflex Mill's Premium Paper Business to Hahnemuhle FineArt
Jan. 13, 2012 - M-real said that it has agreed to sell the Reflex millís Premium Paper business to Walzmuhle AG, which is owned by Hahnemuhle FineArt GmbH, the Hahnemuhle management and private shareholders of Hahnemuhle. The divestment includes the complete Premium Paper business and related assets as well as approximately 100 of M-realís employees.
Premium Paper products are used in high-quality graphical end-uses, such as letterhead, brochures, books, calendars and envelopes.
The value of the deal was not disclosed. Closing is expected during the first quarter of 2012.
The divestment would decrease M-realís annual sales by approximately EUR 20 million and it would not have a material impact on M-realís operative result, M-real said.
"We are very satisfied that the well-recognized speciality paper producer Hahnemuhle takes over the Reflex Premium Paper business," said Mikko Helander, CEO of M-real.
"Our actions to build a Business Park at Reflex by finding other producers to the site have been very successful. Thanks to our Business Park concept, more than half of the originally over 400 jobs can be saved at the mill. Key issues in the success have been excellent cooperation with the union, works council, local authorities and Metsa Tissue Corporation, who is already our partner at the site," Helander said.
"Based on this experience we have a good opportunity to implement the Business Park concept successfully also at Gohrsmuhle mill," he added.
After the divestment of the Premium Paper business, M-real has no operations left at the Reflex mill. The discontinuation of the carbonless paper converting was agreed in late 2011. In October 2010, M-real sold the paper machine 5 and some related assets at the Reflex site to Metsa Tissue.
Hahnemuhle FineArt GmbH is a German-based speciality paper producer and one of the market leaders in its field in Germany (www.hahnemuehle.com).
SOURCE: M-real Corp.