Nov 10, 2010. /Lesprom Network/. M-real Corporation has concluded the statutory negotiations at the Simpele mill in Finland. As a result of the negotiations the Simpele paper machine is expected to be closed by the end of the year. The related personnel reduction is to be maximum 70 people. M-real continues offering one side coated label papers and flexible packaging papers from the Gohrsmühle mill in Germany, company said in a statement received by Lesprom Network. The planned actions are expected to improve M-real's operating result by approximately Euro 4 million per annum. As a result of the Simpele paper machine closure, Consumer Packaging's 4Q 2010 result will as non-recurring item include Euro 12 million impairment of fixed assets and a Euro 3 million provision for cash cost. The closure of the Simpele paper machine reduces European annual speciality paper overcapacity by approximately 50,000 tonnes. M-real has earlier announced investments of Euro 26 million to expand the folding boxboard capacity of the Simpele mill. The investment, expected to be finalised in the summer of 2011 will increase the annual folding boxboard capacity of the mill by approximately 80,000 tonnes.