M-real Corporation has concluded the statutory negotiations at the Simpele mill in Finland. As a result of the negotiations the Simpele paper machine is expected to be closed by the end of the year. M-real continues offering one side coated label papers and flexible packaging papers from the Gohrsmuhle mill in Germany.
The closure of the Simpele paper machine reduces European annual specialty paper overcapacity by approximately 50,000 tonnes. M-real has earlier announced investments of Euro 26 million to expand the folding boxboard capacity of the Simpele mill. The investment, expected to be finalized in the summer of 2011 will increase the annual folding boxboard capacity of the mill by approximately 80,000 tonnes.