M-real divests the Reflex mill's Premium Paper business - Papermart

M-real divests the Reflex mill's Premium Paper business

M-real Corporation, part of Metsaliitto Group, has agreed to divest the Reflex mill’s Premium Paper business to Walzmuhle AG that is owned by Hahnemuhle FineArt GmbH, the Hahnemuhle management and private shareholders of Hahnemuhle. The divestment includes the complete Premium Paper business and related assets as well as approximately 100 of M-real’s employees.
Premium Paper products are used in high-quality graphical end-uses, such as letterhead, brochures, books, calendars and envelopes. The divestment is expected to be closed during 1Q 2012. The divestment would decrease M-real’s annual sales by approximately EUR 20 million and it would not have a material impact on M-real’s operative result.
After the divestment of the Premium Paper business, M-real has no operations left at the Reflex mill. The discontinuation of the carbonless paper converting was agreed in late 2011. In October 2010, M-real sold the paper machine 5 and some related assets at the Reflex site to Metsa Tissue.