The paper production at M-real Husum mill in Sweden is planned to be reorganized. The annual coated paper capacity will be increased from 285,000 tons to approximately 340,000 tons without material investments. The reel production of M-real Äänekoski is planned to be transferred to Husum.Äänekoski mill’s coated fine paper machine is planned to be closed and the sheeting capacity converted fully to folding boxboard sheeting. Statutory negotiations related to the possible closure of the paper production and the development of sheeting capacity covering the whole of Äänekoski paper and board mills’ personnel of approximately 370 people will be commenced on 9 November. Amount of personnel at the Äänekoski mills is expected to reduce by 180 at the maximum. Currently there is one machine at Äänekoski paper mill with an annual capacity of approximately 200,000 tons of coated fine paper. After the planned closure of paper production the paper and board sheeting operations at the site are planned to be combined. This would increase the folding boxboard sheeting capacity and improve M-real’s profitability.M-real’s coated papers will also in the future be sold by Sappi Fine Paper Europe. Based on the planned measures M-real’s annual coated paper capacity would reduce by approximately 145,000 tons. M-real’s annual sales would reduce by approximately 60 million Euros, and the operating result would increase by approximately 20 million euros based on the actual performance of the coated paper production in the first half of 2011.The full annual financial impact of the planned measures is expected to be seen from 2012 onwards.“Profitability of coated paper production is very weak due to the worsened market situation and the structural overcapacity in Europe. The situation is not expected to materially improve in the future either, due to which we are planning to reduce our coated paper production and to focus it to our most efficient unit in Husum where M-real has one of the most modern and efficient coated paper production lines in Europe. Husum is one of Europe’s largest paper and pulp integrated sites which productivity has been increased to a very good level thanks to successful improvement measures,” says M-real’s CEO, Mikko Helander. /KB