M-real to reduce 220 jobs at the Gohrsmühle and Reflex mills in Germany

May 21, 2010. /Lesprom Network/. M-real will reduce 220 jobs at the Gohrsmühle and Reflex mills in Germany. This represents an about 20% reduction of the total workforce. The implementation of personnel reduction is ongoing and it will be finalised by the end of 2010, company said in a statement received by Lesprom Network. Annual production capacity of the Reflex mill will reduce by approximately 80 000 tonnes. The production of carbonless base papers will move to Gohrsmühle mill and the converting as well as the finishing remains in the Reflex mill. The Reflex mill will continue the production of premium fine and digital imaging papers. Product offering and supply capability of M-real Zanders will remain unchanged. In the future, the Reflex mill will be developed based on a paper park concept. The target is to find industrial partnerships with other producers and thus create new jobs at the mill site. In Gohrsmühle the share of speciality papers of the total product portfolio will continue to increase. Speciality Papers business area’s operating result in the 2Q 2010 will due to the above mentioned measures include approximately Euro 16 million non-recurring cost provisions. The expected annual profit improvement of these measures is approximately Euro18 million fully from 2011 onwards.