M-real Completes Negotiations for Closure of Alizay Mill in France
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M-real Corp., Finland, a member of the Metsä Group, reports that it has concluded the information and consultation process regarding the planned closure of its Alizay mill in France. M-real started negotiations with the workers' representatives in October 2011.
Following conclusion of the negotiations, M-real can make final decisions to close the Alizay mill. As a result, the company's annual uncoated fine paper capacity will be reduced by approximately 310,000 metric tons. The related personnel reduction, which is 330 people at most, will be implemented by the end of the second quarter of this. The level of redundancy and other related costs are in line with cost provisions made in the last quarter of 2011.
A voluntary reindustrialization project is planned in Alizay. The project will be carried out jointly by M-real, workers' representatives, and local authorities. The target of the project is to create new jobs and businesses at the Alizay site.
"This is a very material step in our efforts to eliminate losses of our paper business. We are now, according to our strategy, very strongly focused on the profitable paperboard business that we will further strengthen in the future," says M-real's CEO Mikko Helander.
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