5 May, 2011
M-real Corporation, part of Metsäliitto Group, plans to divest the entire Gohrsmühle mill in Germany or alternatively parts of the mill separately based on a Paper Park concept. In case the divestment would turn out to be unsuccessful M-real commences a process to discontinue the uncoated fine and the unprofitable parts of the speciality paper operations at Gohrsmühle mill. Should the closures materialize Gohrsmühle mill would only produce cast coated label and packaging products (Chromolux). M-real is also planning to discontinue its remaining carbonless paper converting operations at Reflex mill in Germany.
M-real has during recent years had several unsuccessful attempts with a number of candidates to divest the Alizay paper mill in France. M-real continues to search for possibilities to divest the mill. M-real invites credible candidates to a public process aiming at a divestment of the Alizay paper mill by the end of September 2011 at the latest. Should M-real fail to find a credible buyer for the mill within the given time frame, Alizay paper mill is planned to be closed.
If the measures are implemented as planned M-real’s annual sales is expected to reduce by about EUR 390 million and the operating result to increase by about EUR 60 million based on 2010 actual performances. Most of the annual financial impact is expected to be seen in 2012, full impact from 2013 onwards.
As a result from the planned measures M-real’s annual paper production capacity would reduce by about 500,000 tonnes of which about 430,000 tonnes would be uncoated fine paper and 70,000 tonnes coated specialty papers.
In total the planned measures are preliminarily expected to result in approximately EUR 170 million negative non-recurring result impacts. The estimated net cash costs are approximately EUR 50 million. The planned measures are a major step in M-real’s transformation to a packaging board focused company.