M-real Corporation, part of Metsä Group, has concluded the information and consultation process at the Gohrsmühle mill in Germany. In order to eliminate the severe losses of the mill, M-real started the negotiations with the workers’ representatives concerning the planned discontinuation of the mill’s uncoated fine paper and unprofitable speciality paper production. M-real released a stock exchange bulletin on 18 October 2011 concerning these plans.

Following the conclusion of the negotiations, M-real is able to make the final decisions to discontinue Gohrsmühle mill’s uncoated fine paper production and the production of the unprofitable speciality papers. As a result, M-real’s annual uncoated fine paper capacity reduces by approximately 120,000 tonnes and speciality paper capacity by 70,000 tonnes. The related personnel reduction of maximum 260 people will be implemented by the end of the second quarter of 2012. The level of redundancy costs is in line with the cost provisions made in the last quarter of 2011.

M-real continues the Chromolux business and is currently investigating possibilities to start up folding boxboard sheeting operations at the Gohrsmühle site.

Actions to establish a business park in Gohrsmühle continue together with the workers’ representatives and the local authorities with the target to create new jobs at the site. One of the alternatives is to find partners to the site to utilise the existing paper production and converting equipment as well as other site infrastructure.  An example of the successful implementation of the business park concept is the Reflex mill, where M-real was able to divest business units to different companies saving more than 200 jobs. Divestment of M-real’s last operations at the Reflex mill, the Premium Paper business, was finalised in mid-February 2012.

“We have reached a very important step in our work to eliminate losses of our paper business. Opportunities to establish a business park in Gohrsmühle are good,” says M-real’s CEO Mikko Helander.