M-real to Invest EUR 26 Million at Simpele Mill
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M-real Corp., part of Metsäliitto Group, Finland, is planning to increase the annual folding boxboard capacity of its Simpele mill by about 80,000 metric tons, bringing the mill's total capacity to about 300,000 metric tpy. Sheeting capacity will also be expanded next summer, with the total value of the potential investments in Simpele estimated at EUR 26 million.
"Demand outlook for folding boxboard is very good and through the innovative product and service development, M-real's market shares have steadily increased. After the potential investment, the Simpele machine will be the biggest and most competitive folding boxboard machine in Europe," says CEO Mikko Helander.
To improve profitability, M-real is considering transferring the Simpele specialty paper production to the Gohrsmühle mill in Germany and closing the Simpele paper machine. A maximum of 80 jobs could be cut.
"M-real is a leading European specialty paper producer. M-real is further focusing its specialty paper business to packaging related grades. The planned transfer of Simpele specialty paper production would strengthen the competitiveness of Gohrsmühle mill and improve M-real's profitability," said Helander.
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