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M-Real to Invest EUR 30 Million for Capacity Expansions at änekoski, Kyröskoski

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M-real Corp., part of Metsäliitto Group, Finland, this week reported that it plans to increase the annual folding boxboard capacity of its Äänekoski and Kyröskoski mills in Finland by a total of about 70 000 metric tpy. The combined value of the planned investments at the two mills is approximately EUR 30 million. The Kyröskoski investment will be completed late this year and the Äänekoski investment will be completed in the spring of 2012.

Related to the planned investment, M-real will start statutory negotiations at the Äänekoski board mill on February 18, covering a total of about 130 people. The maximum personnel reduction need is estimated to be 10 people. The Kyröskoski investment is expected to have no personnel impact.

Following the planned investments, the annual folding boxboard production capacity at Äänekoski mill would be approximately 240,000 metric tpy and approximately 190 000 metric tpy at the Kyröskoski mill. The new production volumes are planned to be sold for food packaging purposes. In addition to these planned investments, M-real noted that it can further increase the capacity of Kyroskoski and Äänekoski mills if the market situation so requires.

"Demand growth for M-real's ecological and safe virgin fibre board has in food packaging been faster than expected and the expansion of Simpele mill's capacity that will be implemented in spring 2011 is not enough to satisfy the demand. The best way to increase our production is to debottleneck the current board machines in moderate steps. Our target is to continue the profitable growth of our cartonboard business," says CEO Mikko Helander.

M-real has announced plans to increase its total folding boxboard capacity by about 150,000 metric tpy during 2011-2012, including the investments at Simpele, Äänekoski and Kyröskoski mills. Thus, M-real's total folding boxboard capacity would increase to about 935,000 metric tpy.

The photos below show the folding boxboard machine at Äänekoski (top) and the mill at Kyröskoski (bottom) in Finland.


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