Jan 20, 2006. /Lesprom Network/. Finnish M-real Group paper mill in the Austrian town of Hallein will cut 100 of the current 800 jobs due to low profits, APA reported according to M-real Hallein. M-real Hallein will cut 40 jobs by the end of 2006, and a further 30 jobs each in 2007 and 2008. Part of the job cuts will be covered by retirement and voluntary resignations. The management also proposed flexible working hours, an increase of the working week to 40 for the whole staff and a return to payments above the general pay scale. The saving measures were the result of falling profits, higher raw material, energy and personnel costs as well as lower than expected 2005 results, the company said. Revenue in 2005 fell by Euro 5.0 million to Euro 225 million. The European paper industry is under growing cost pressure. The paper mill must be prepared for the future in order for the Hallein location to be secured in the long-term, M-real CEO Joerg Harbring said. The paper mill was profitable, but the profits were too low, Mr. Harbring added.