Displaying items by tag: Mreal Corporation

M-real Corporation, part of Metsäliitto Group, starts a new profit improvement programme for the year 2011. The programme focuses on improving the paper business profitability as well as decreasing variable costs of all businesses. The earlier announced profit improvement impact of Simpele and Kemi cartonboard investments and the closure of the speciality paper production at Simpele are included in the new profit improvement programme.

The planned measures are expected to improve M-real's annual operating result by EUR 70 million with full effect from 2012 onwards. The planned measures would improve 2011 result by approximately EUR 30 million. The result in 2011 is thus expected to improve in total by approximately EUR 90 million including the impact of the new programme and the previous years' profit improvement programmes.

“M-real has good possibility to mostly cover the accelerated cost inflation by own profit improvement measures. In addition to the earlier implemented measures and this new programme, further profit improvement actions will be searched. The focus of the earlier profit improvement programmes has been on decreasing fixed costs. M-real has, in upcoming years, significant profit improvement potential especially in variable costs, concerning primarily chemical, energy and logistic costs”, says Mikko Helander, CEO of M-real.

M-real will continue the actions to eliminate the losses of its paper businesses that would result as a rise in the company’s profitability to a new improved level.

M-REAL CORPORATION

M-real, the world’s leading producer of wallpaper base, will show its full range at Heimtextil 2011 with products ideal for current design trends as well as making decorating easy.

M-real’s Cresta range includes duplex and simplex wallpaper base as well as non-woven products, meeting the demands of all printing and converting processes as well as the functionality of paste-the-wall, washable and peelable wall coverings. There are bases suitable for both expanded vinyl wallcoverings and paper wallcoverings, and specialist products that offer resistance to high temperatures in converting or are suitable for inks containing pearlescent pigments.

“There are exciting trends in wallpaper design at the moment, including big, bold colours and patterns,” says Risto Auero, VP Sales, Linerboards & Speciality Papers in M-real Consumer Packaging.  “Our non-woven grades, Cresta NG, NG2 and NGX, are ideal for this sort of design as they ensure perfect colour reproduction.  There is also demand for ‘retro’ designs, but without a return to the bad old days of paper hanging.  Today’s wallcoverings offer easy hanging, and can be removed simply by peeling – perfect for locations such children’s bedrooms where frequent changes may be expected.”

Together with its partners M-real is planning to invest in a new biopower plant at its Kyro mill, expected to be ready in autumn 2012, when also providing electricity and heat for the Hämeenkyro neighbourhood.  It would replace fossil fuels with renewable energy sources, primarily wood from sustainable, managed forests.  The biopower plant is expected to make a dramatic reduction in the mill’s CO2 emissions by around 100,000 tonnes a year - equivalent to the annual emissions of 60,000 cars.   

Risto Auero adds: “As the Kyro mill’s PM3 (paper machine 3) is dedicated completely to wallpaper base production, capable of making 105,000 tonnes per year, the new biopower plant would enable our customers to offer wallcoverings that combine top quality and performance with improved environmental credentials.”

The full range of M-real wallpaper bases includes:

• Cresta D: Uncoated peelable and spongeable wallpaper base
• Cresta D OBA: Uncoated peelable and spongeable FWA-containing wallpaper base
• Cresta D1: Single-coated peelable and spongeable wallpaper base
• Cresta D2: Double-coated peelable and washable wallpaper base
• Cresta M: ingle-layer mechanical wallpaper base
• Cresta MB: Single-layer high-bulk mechanical wallpaper base
• Cresta NG: Uncoated wood-containing non-woven
• Cresta NGX: Both sides coated wood-containing non-woven
• Cresta NG2: Triple-coated wood-containing non-woven

For further information please contact in M-real Consumer Packaging:
Risto Auero, Vice President, Sales, Linerboards & Speciality Papers
Mobile +358 50 598 8828
E-mail: This email address is being protected from spambots. You need JavaScript enabled to view it.

Metso will rebuild two board machines for M-real in Finland to increase capacity and improve quality: the cartonboard machine at the Simpele mill and the kraftliner machine at the Kemiart Liners mill in Kemi. The start-up of the rebuilt Simpele machine is scheduled for the second quarter of 2011 and that of the rebuilt Kemiart Liners machine for the third quarter of 2011. The combined value of the orders is below EUR 20 million. The order is included in Paper and Fiber Technology’s Q4 orders received.

Metso's delivery to the Simpele mill will include a rebuild of the forming section, press section including a new shoe press and the dryer section. After the rebuild, the annual capacity of the Simpele mill will be approx. 300,000 tonnes, making the Simpele machine the biggest folding boxboard machine in Europe.

Metso’s delivery to the Kemiart Liners mill will include a coating section rebuild. Additionally, a coating drying rebuild will replace old gas infrared dryers with energy efficient high-drying-capacity air dryers. The rebuild will further improve the coated white top liner quality produced.

M-real is Europe’s leading primary fibre paperboard producer and a major paper supplier. The company’s customers include brand owners, carton printers, converters, publishers, printing houses, merchants and office suppliers. In 2009, the company’s sales totalled EUR 2.4 billion, and it has approximately 4,700 employees. M-real is part of the Metsäliitto Group.

Metso is a global supplier of sustainable technology and services for mining, construction, power generation, automation, recycling and the pulp and paper industries. We have about 27,000 employees in more than 50 countries. www.metso.com

For further information for the press, please contact:
Mikko Tani, Vice President, Sales, Paper business line, Metso, tel. +358 40 564 2007

Independent tests carried out recently on behalf of M-real Consumer Packaging have confirmed that lighter weight primary fibre based kraftliners provide better corrugated box compression strength than heavier weight white lined chipboard (WLC) or testliners containing recycled fibres.  Both cost savings and sustainability benefits can be gained by using stronger and lighter weight kraftliners in corrugated packaging

The tests, by an external research institute, compared corrugated trays in which only the white top liner varied.  The trays using M-real’s Kemiart’s coated white top kraftliner were tested in comparison with trays using WLC or coated white top testliner.  The basis weights of the boards varied from 160 to 210 g/m².

The results found that corrugated trays made of primary fibre based kraftliners showed higher box compression strength than trays made of recycled fibre based liners but within the same basis weight.  Trays using a 11-12 % lighter weight kraftliner provided 18-32 % higher box compression strength values compared with those made of recycled materials.

Further box compression tests compared the stacking strength of primary folding cartons with that of folding cartons with a corrugated tray and of folding cartons with both a corrugated tray and lid.  Results showed that use of a tray increased the strength of the stack by 10 %, and use of both tray and lid gave an additional 10% higher box compression strength.  This means savings can be realised if a lower weight material is specified for primary cartons.  Corrugated trays can also improve the stability of the load during transportation and handling.

Risto Auero, M-real’s VP Sales, Linerboards & Speciality papers, says: “Improved compression resistance ensures better protection for the saleable product, and minimises product spoilage and cleaning costs in the retail chain.  The use of trays or other shelf ready transportation packages made of corrugated materials also provides substantial cost savings due to more efficient logistic handling and shelving of the product.  Better brand recognition during transportation, warehousing and on shop shelves is a further benefit.”

For further information please contact M-real Consumer Packaging:

Tiina-Liisa Salomaa, Marketing Communications Manager

Mobile  +358 (0)50 598 9177

E-mail: This email address is being protected from spambots. You need JavaScript enabled to view it.

M-real in brief:
M-real is Europe’s leading primary fibre paperboard producer and a major paper supplier. The company’s customers include brand owners, carton printers, converters, publishers, printing houses, merchants and office suppliers. 
M-real supports its customers’ businesses by providing high-performance paperboards and quality papers for consumer packaging, communications and advertising end-uses. Together with its customers and partners, M-real develops products and services for demanding end uses. The company’s paperboard is mainly used for the packaging of beautycare and healthcare products, foods, cigarettes, and consumer durables as well as graphics. Paper is mainly used for office papers as well as wallcoverings and other speciality end uses. 
M-real’s business areas are Consumer Packaging, Office Papers, Speciality Papers and Market Pulp and Energy. 
M-real is headquartered in Finland. In 2009, the company’s sales totalled EUR 2.4 billion, and it has approximately 4,900 employees. M-real, part of Metsäliitto Group, is listed on the NASDAQ OMX Helsinki Ltd.
www.m-real.com

M-real Corporation, part of Metsäliitto Group, has concluded the statutory negotiations at the Simpele mill. To improve the profitability of the mill M-real started on 24 September 2010 the statutory negotiations concerning the potential transfer of the Simpele speciality paper production and the consequent closure of the Simpele paper machine.

As a result of the negotiations the Simpele paper machine is expected to be closed by the end of the year. The related personnel reduction is to be maximum 70 people. M-real continues offering one side coated label papers and flexible packaging papers from the Gohrsmühle mill in Germany.

The planned actions are expected to improve M-real's operating result by approximately EUR 4 million per annum. As a result of the Simpele paper machine closure, Consumer Packaging's 4Q 2010 result will as non-recurring item include EUR 12 million impairment of fixed assets and a EUR 3 million provision for cash cost. The closure of the Simpele paper machine reduces European annual speciality paper overcapacity by approximately 50,000 tonnes.

In close co-operation with local authorities, M-real will assist redundant employees to find new employment. In addition, M-real will also facilitate redeployment, if possible, by offering employment opportunities internally within the company or other Metsäliitto Group's businesses.

M-real has earlier announced investments of EUR 26 million to expand the folding boxboard capacity of the Simpele mill. The investment, expected to be finalised in the summer of 2011 will increase the annual folding boxboard capacity of the mill by approximately 80,000 tonnes.

Source: M-REAL CORPORATION

For further information, please contact:
Mika Joukio, SVP, Head of M-real´Consumer Packaging, tel. +358 10 463 3041

Result for January-September 2010
* Sales EUR 1,940 million (Q1-Q3/2009: 1,826)
* Operating result excluding non-recurring items EUR 136 million (-157).
Operating result including non-recurring items EUR 150 million (-215)
* Result before taxes excluding non-recurring items EUR 72 million (-215).
Result before taxes including non-recurring items EUR 70 million (-284)
* Earnings per share from continuing operations excluding non-recurring items EUR 0.16(-0.64) and including non-recurring items EUR 0.15 (-0.88)

Result for the third quarter                                                    
* Sales EUR 662 million (Q2/2010: 676)                                          
* Operating result excluding non-recurring items EUR 54 million (43). Operating result including non-recurring items EUR 66 million(35)
* Result before taxes excluding non-recurring items EUR 33 million (24). Result before taxes including non-recurring items EUR 45 million (0)
* Earnings per share from continuing operations excluding non-recurring items EUR 0.08 (0.05) and including non-recurring items EUR 0.12 (-0.03)

Events during the third quarter of 2010                                         
* The Alizay pulp mill was shut down permanently.                               
* M-real continued to increase prices of all of its main products.              
* M-real plans to continue Simpele's speciality paper production at the Gohrsmühle mill.                                                                
* Standard & Poor's and Moody's Investor Service upgraded M-real's credit rating.                                                                         

Events after the period                                                         
* M-real decided to invest in the expansion of board production and sheeting operations at the Simpele mill.                                             
* M-real signed an agreement with Metsä Tissue Corporation on partial divestment of the Reflex mill.

                                                             
“Our profitability improved further, and the quarterly result was the best we have had in years. Annual contract negotiations with the biggest cartonboard customers, concerning price increases and additional deliveries, have proceeded as targeted. The demand outlook in cartonboard is excellent, and thus we have made significant investment decisions. The profit improvement measures related to the paper businesses will continue.”                                         

Mikko Helander, CEO

To see the full report download the attachment below.

M-real invests approximately EUR 16 million at Kemiart Liners mill - a final decision made regarding EUR 26 million investments in Simpele

M-real Corporation, part of Metsäliitto Group, has decided to invest at the Kemiart Liners mill by modernizing the coating section. Through the investment M-real focuses more on the coated grades and improves the product quality. The investment will be done during 2011. The total value of the investment is approximately EUR 16 million.

“M-real is the European market leader in coated white top liners. This investment is an important development step that is further strengthening M-real's market and quality leadership”, says CEO Mikko Helander.

M-real has, according to the earlier announced plans, made a final decision to invest in the expansion of the cartonboard production and sheeting operations at the Simpele mill. The value of the investments is expected to be approximately EUR 26 million. The investments will be completed in summer 2011.

For further information, please contact:
Mika Joukio, SVP, Head of Consumer Packaging, tel. +358 10 463 3041
Juha Laine, Vice President, Investor Relations and Communications, tel. +358 10 465 4335

M-real Corporation, part of Metsäliitto Group, has concluded the statutory negotiations at the Äänekoski paper mill. As a result of the negotiations, the personnel reduction is to be maximum 44 people. Effects on the personnel will be realized during the year 2011 at the latest.

M-real started the statutory negotiations on 9 August 2010 and they were based on efficiency improvement measures at the Äänekoski paper mill to improve its profitability. The statutory negotiations concerned the Äänekoski paper mill personnel in total of about 250 people.

In close co-operation with local authorities and the city of Äänekoski, M-real will help redundant employees to find new employment. In addition, M-real will also facilitate redeployment, if possible, by offering jobs internally in the company or other Metsäliitto Group's businesses.

M-real announced on 29 March 2010 its plan to invest approximately EUR 6 million in sheeting operations at the Äänekoski paper mill. The investment will increase sheeting capacity, streamline the conversion process and improve package quality and the mill's profitability. The investment will be concluded in summer 2011.

M-REAL CORPORATION

For further information, please contact:
Matti Mörsky, CFO, tel. +358 10 465 4913
Juha Laine, Vice President, Investor Relations and Communications, tel. +358 10 465 4335

M-real Corporation, part of Metsäliitto Group, is planning to increase the annual folding boxboard capacity of Simpele mill by about 80 000 tonnes. At the same time the sheeting capacity is planned to be expanded. The total value of the potential investments in Simpele, which are planned to be done during summer 2011, is approximately EUR 26 million. Following the investment the total folding boxboard capacity of Simpele would be approximately 300 000 tonnes per annum. The production would mainly be sold to food packaging purposes.

“Demand outlook for folding boxboard is very good and through the innovative product and service development M-real's market shares have steadily increased. As the market leader M-real is planning to take this step to moderately increase the capacity to be able to serve customers even better. After the potential investment Simpele machine is the biggest and most competitive folding boxboard machine in Europe,” says CEO Mikko Helander.

To improve profitability M-real is considering to transfer the Simpele speciality paper production to Gohrsmühle mill in Germany and consequently to close the Simpele paper machine. The statutory cooperation negotiations related to the possible closure and the investment in board production will be commenced on 24 September 2010. The planned personnel reduction is maximum 80 people. The potential transfer of the production would improve M-real's operating result by approximately EUR 4 million per annum. As a result of the planned Simpele paper machine closure Consumer Packaging's 4Q 2010 result will as non-recurring item include EUR 12 million write offs. Related non-recurring cash costs, if any, will be determined once the negotiations with employees are completed latest by 5 November 2010. The planned closure would reduce European annual speciality paper overcapacity by about 50 000 tonnes.

“M-real is a leading European speciality paper producer. M-real is further focusing its speciality paper business to packaging related grades. The planned transfer of Simpele speciality paper production would strengthen the competitiveness of Gohrsmühle mill and improve M-real's profitability. M-real is planning to increase the share of speciality grades in Gohrsmühle further,” concludes CEO Helander.
 
For further information, please contact:
Matti Mörsky, CFO, tel. +358 10 465 4913
Juha Laine, Vice President, Investor Relations and Communications, tel. +358 10
465 4335