M-real Plans to Invest Approximately EUR 30 (USD 40.9) Million to Expand Capacity at Äänekoski and Kyröskoski Mills
M-real Corporation, part of Metsäliitto Group, plans to increase the annual folding boxboard capacity of Äänekoski and Kyröskoski mills in total by about 70,000 metric tons (77,160 tons). The combined value of the planned investments in Äänekoski and Kyröskoski is approximately EUR 30 (USD 40.9) million. The Kyroskoski investment is planned to be completed in late 2011 and the Äänekoski investment in spring 2012.
Related to the planned investment, M-real will start statutory negotiations at the Äänekoski board mill on February 18, 2011 covering the mill workers, in total approximately 130 people. The maximum personnel reduction need is estimated to be 10 people. The Kyröskoski investment is expected to have no personnel impact.
Following the planned investments, the annual folding boxboard production capacity at the Äänekoski mill will be approximately 240,000 metric tons (264,550 tons) and approximately 190,000 (209,430) at the Kyröskoski mill. The new production volumes are planned to be sold for food packaging purposes. In addition to these planned investments, M-real has good potential to further increase the capacity of Kyroskoski and Äänekoski mills if the market situation so requires.
"Demand growth for M-real's ecological and safe virgin fiber board in food packaging has been faster than expected, and the expansion of Simpele mill's capacity that will be implemented in spring 2011 is not enough to satisfy the demand. The best way to increase our production is to debottleneck the current board machines in moderate steps. Our target is to continue the profitable growth of our cartonboard business," says CEO Mikko Helander.
M-real has announced plans to increase the annual folding boxboard capacity in total by about 150,000 metric tons (165,340 tons) during 2011-2012 through the investments at the Simpele, Äänekoski and Kyröskoski mills. Thus, M-real's total folding boxboard capacity would increase to about 935,000 metric tons (1,030,000 tons) per year.
For further information, please contact:
Mika Joukio,
Senior Vice President,
head of M-real Consumer Packaging,
tel. +358 10 463 3041
Juha Laine,
Vice President,
Investor Relations and Communications,
tel. +358 10465 4335
M-real Corporation
Address
P.O.Box 20,
FI-02020 METSÄ,
Finland
Revontulentie 6,
Finland
Telephone
+358 1046 11
Fax
+358 1046 55232
Business ID
0635366-7
Internet
02100 Espoo,
www.m-real.com
M-real in brief: M-real is Europe's leading primary fiber 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 totaled EUR 2.4 (USD 3.2) 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
