Displaying items by tag: Metsäliitto Group

M-real Corporation, part of Metsäliitto Group, is expected to book in its 4Q 2010 operating result a total of EUR -41 million net non-recurring items. The main items are:

* EUR 28 million impairment of fixed assets in Speciality Papers business area
* EUR 15 million impairment of fixed assets in Market Pulp and Energy
* EUR 15 million impairment of fixed assets and cost provisions in Consumer Packaging related to closure of Simpele paper machine
* EUR 9 million reversal of impairment of fixed assets in Office Papers
* EUR 7 million profit on sale in Speciality Papers related to partial divestment of Reflex mill

The impairment charges will reduce M-real's annual depreciations by approximately EUR 4 million from 2011 onwards. The non-recurring items have in total a positive net cash effect of approximately EUR 5 million.

M-real will announce the full year 2010 results on 10 February 2011.

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, 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