Metsä Board to Permanently Close Down Wallpaper Base Machine in Kyro
Metsa Board is closing a wallpaper base machine (PM3) at its Kyro mill in Finland. The machine closure will decrease the mill's workforce by 94 people.
Sept. 29, 2016 - Metsä Board announced on August 4, 2016 that it was planning to close down the wallpaper base machine (PM3) located at its Kyro mill in Hämeenkyrö, Finland, and to discontinue its loss-making wallpaper base production.
The statutory labor negotiations, which affected all of the 250 people working at the mill, have been completed. As a result, the Kyro mill wallpaper base machine PM3 will be closed down and the number of personnel at the mill will decrease by 94 people.
In 2015, sales from Kyro's paper business totaled EUR 50 million and the operating result was EUR -5 million, Metsä Board noted.
Metsä Board's third quarter result is estimated to include non-recurring net costs of around EUR 9 million related to the closure. The closure is estimated to have a positive cash impact of around EUR 10 million, the majority of which consists of working capital released during the fourth quarter.
The Kyro mill's other machine — a folding boxboard machine (BM1) — with annual capacity of 190,000 tonnes will remain at the Kyro mill, producing premium packaging board for beauty and healthcare products and graphics end uses, among other things.
Metsä Board is a leading European producer of folding boxboards and white linerboards made from fresh forest fibres. To learn more, please visit: www.metsaboard.com
SOURCE: Metsä Board