M-real has concluded the statutory negotiations at the Simpele mill

M-real has concluded the statutory negotiations at the Simpele mill
M-real Corporation Press release on 10 November 2010 at 15                      
M-real Corporation, part of Metsäliitto Group, has concluded the statutory      
negotiations at the Simpele mill. To improve the profitability of the mill      
M-real started on 24 September 2010 the statutory negotiations concerning the   
potential transfer of the Simpele speciality paper production and the consequent
closure of the Simpele paper machine.                                           

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.                           

The planned actions are expected to improve M-real's operating result by        
approximately EUR 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 
EUR 12 million impairment of fixed assets and a EUR 3 million provision for cash
cost. The closure of the Simpele paper machine reduces European annual          
speciality paper overcapacity by approximately 50,000 tonnes.                   

In close co-operation with local authorities, M-real will assist redundant      
employees to find new employment. In addition, M-real will also facilitate      
redeployment, if possible, by offering employment opportunities internally      
within the company or other Metsäliitto Group's businesses.                     

M-real has earlier announced investments of EUR 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.                                            

M-REAL CORPORATION                                                              

For further information, please contact:                                        
Mika Joukio, SVP, Head of M-real´Consumer Packaging, tel. +358 10 463 3041

About Us

Metsä Boardwww.metsaboard.com Metsä Board is a leading European producer of premium fresh fibre paperboards including folding boxboards, food service boards and white kraftliners. Our lightweight paperboards are developed to provide better, safer and more sustainable solutions for consumer goods as well as retail-ready and food service applications. We work together with our customers on a global scale to innovate solutions for better consumer experiences with less environmental impact. The pure fresh fibres Metsä Board uses are a renewable resource, traceable to origin in sustainably managed northern forests. The global sales network of Metsä Board supports customers worldwide, including brand owners, retailers, converters and merchants. In 2017, the company’s sales totalled EUR 1.8 billion, and it has approximately 2,350 employees. Metsä Board, part of Metsä Group, is listed on the Nasdaq Helsinki.