Metsä Board, part of Metsä Group (Helsinki, Finland), is planning to close down its wallpaper base machine PM 3 and discontinue its loss-making wallpaper base manufacturing at the Kyro mill in Hämeenkyrö, Finland. The demand for wallpaper base is decreasing globally, and Metsä Board is focusing on paperboard, meaning that wallpaper base production is not included in the company’s core business operations. In 2015, sales from Kyro’s paper business operations totaled EUR 50 million, and the operating result was - EUR 5 million.

In addition to the planned close down of the wallpaper base machine PM 3, Metsä Board has a need to adjust and improve operations at the Kyro mill to increase its competitiveness. Therefore, the company will commence related statutory labor negotiations covering all employees at the mill. According to the plan, the estimated personnel effect is up to 100 employees. Approximately 250 employees currently work at the Kyro mill.

After implementing possible changes, the folding boxboard machine, with an annual capacity of 190,000 metric tons, will still continue operating at the Kyro mill. In addition, Hämeenkyrön Voima’s biopower plant, producing heat and electricity, is located in the mill area.