M-real starts statutory negotiations at Hallein mill, Austria, targeting to discontinue the paper production at the end of April 2009. At Gohrsmuhle mill, Germany, the standard fine paper production will be discontinued during April and its effects will be reviewed. At Gohrsmuhle, it has already been decided that the production of speciality papers as well as uncoated fine paper reels and folio sheets will be expanded.
The European paper business has over the past years been suffering from overcapacity and the both mills have been making losses for a long period of time. Since September 2007, M-real has examined possibilities to solve the problems related to Hallein and Gohrsmule.
The combined standard coated fine paper production capacity of Hallein and Gohrsmuhle is about 0.6 million tonnes per annum. The statutory negotiations related to the discontinuation of paper production at Hallein concern some 480 people.