M-real to Close Two Specialty Paper Machines in Germany

M-real Corp., part of Metsäliitto Group, Finland, will close two specialty paper machines at its Zanders Gohrsmühle and Reflex mills in Germany. The profitability improvement moves also include streamlining of the organizations at both mills. The Reflex mill has four paper machines, while the Gohrsmühle mill has two. Both mills have several converting lines. Earlier this year, the Gohrsmühle mill's production portfolio was radically changed by discontinuing the standard coated fine paper production and expanding the uncoated fine paper and specialty paper production.

Paper machines 1 and 5 will be closed at the Reflex mill, accounting for 80,000 metric tpy of annual capacity. The production of carbonless papers will be transferred to Gohrsmühle mill but the converting is to remain at Reflex, which will continue the production of premium fine and digital imaging papers. Product offering and supply capability of M-real Zanders will remain unchanged.

"The production conversion at M-real Zanders has been implemented according to targets. Despite the unfavorable general market situation, the new uncoated fine papers were successfully launched in a short time and customer feedback has been very positive. Work to improve the profitability of M-real Zanders continues based on the measures announced today," says Mikko Helander, CEO of M-real.

Negotiations to implement the planned machine closures and organizational changes will start in January, and implementation of the planned measures is planned for the first half of 2010.