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Negotiations to halt Gohrsmühle mill’s unprofitable operations finalized

Feb 24 2012  M-real has concluded the information and consultation process at the Gohrsmühle mill in Germany. The unprofitable operations will be closed, and the personnel will be reduced by 260 people.

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.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 tons and speciality paper capacity by 70,000 tons.The related personnel reduction of maximum 260 people will be implemented by the end of the second quarter of 2012.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.“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.

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