Dec 09, 2009. /Lesprom Network/. M-real Corporation is planning new significant internal measures to improve the Speciality Papers business area’s profitability. The main measures are the planned closures of two speciality paper machines in Reflex mill and the streamlining of the organizations in both Gohrsmühle and Reflex mills, the company said in a press release received by Lesprom Network. Speciality Papers business area includes the M-real Zanders paper mills Reflex and Gohrsmühle in Germany. In Reflex there are currently four and in Gohrsmühle two paper machines and in both mills there are several converting lines. Gohrsmühle mill’s production portfolio has earlier this year been radically changed by discontinuing the standard coated fine paper production and expanding the uncoated fine paper and speciality paper production. Paper machines 1 and 5 are intended to be closed in Reflex mill accounting for 80,000 tonnes of annual capacity. The production of carbonless papers is planned to be transferred to Gohrsmühle mill and the converting to remain in Reflex. Reflex will continue the production of premium fine and digital imaging papers. Product offering and supply capability of M-real Zanders will remain unchanged. At the same time the organization and the management model in M-real Zanders is planned to be streamlined. “The production conversion in M-real Zanders has been implemented according to targets. Despite the unfavourable general market situation the new uncoated fine papers were successfully launched in a short time and customer feedback has been very positive. Work to improve the profitability of M-real Zanders continues based on the measures announced today,” says Mikko Helander, CEO of M-real. Negotiations to implement the planned machine closures and organizational changes will start on in January 2010. Implementation of the planned measures is planned to occur during the first half of 2010. Related non-recurring costs will be determined once negotiations are completed. Annual profit improvement target for the planned measures is approximately Euro 18 million fully from 2011 onwards.