M-real to Discontinue Uncoated, Specialty Paper Production at Gohrsmühle
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M-real Corp., Finland, part of the Metsä Group, this week reported that it has concluded an "information and consultation process" to discontinue uncoated fine paper and "unprofitable" specialty paper production at its Gohrsmühle mill in Germany. To eliminate "severe losses" at the mill, M-real began negotiations with worker representatives this past October.
M-real's annual uncoated fine paper capacity at the Gohrsmühle mill will be reduced by approximately 120,000 metric tons and specialty paper capacity by 70,000 metric tons. The related personnel reduction of a maximum of 260 people will be implemented by the end of the second quarter this year. The level of redundancy costs is in line with the cost provisions made in the last quarter of 2011.
M-real will continue the Chromolux business and says it is currently investigating possibilities to startup folding boxboard sheeting operations at the Gohrsmühle site.
M-real noted that its efforts to establish a business park in Gohrsmühle are continuing, together with workers' representatives and local authorities, with the goal of creating new jobs at the site. One of the alternatives is to find partners to use existing paper production and converting equipment as well as other site infrastructure. M-real points to its Reflex mill as an example of the successful implementation of the business park concept, where the company was able to divest business units to different companies, saving more than 200 jobs. Divestment of M-real's last operations at the Reflex mill, the Premium Paper business, was finalized last month.
"We have reached a very important step in our work to eliminate losses of our paper business. Opportunities to establish a business park in Gohrsmühle are good," M-real's CEO Mikko Helander said.
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