Metsä Tissue Explores Options for Mänttä Mill in Finland

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Metsä Tissue, part of Finland-based Metsäliitto Group, plans to initiate statutory negotiations in Finland to address options for strengthening, securing, and improving profitability of its Baking & Cooking business. It also will explore alternatives for generally upgrading the efficiency of its Mänttä mill in Finland, which has five paper machines, three of which produce tissue paper and two that make greaseproof papers. The available options for strengthening the Baking & Cooking business are either to relocate production, converting, and associated sales and customer service functions closer to key markets or, alternatively, to invest in the full or partial modernization of production equipment at the Mänttä facility.

One motivating factor for the required analysis is the Memorandum of Understanding the company signed on June 16 with M-real, Finland, to investigate whether a paper machine and related equipment and facilities at the Reflex mill in Düren, Germany might match the needs of the Baking & Cooking business. If so, Metsä Tissue would buy PM 5, a specialty paper machine at the Reflex mill, along with related equipment and a power plant. The statutory negotiations will concern production, logistics, and service personnel at the Mänttä mill as well as personnel in the Baking & Cooking business, affecting 500 employees in total. The maximum headcount reduction foreseen by the company would be approximately 150 employees.