English

M-REAL SELLS THE UNPROFITABLE PONT SAINTE MAXENCE MILL

Report this content 
M-real Corporation Stock Exchange Bulletin 30.6.2006 at 13.45 p.m.


M-real has sold today the Pont Sainte Maxence paper mill in France to
a German company Arques Industries. The sale of the mill causes about
EUR 35 million sales loss which is booked in the result of the second
quarter.

The annual capacity of the Pont Sainte Maxence mill is 120,000 tons
and it employs 200 people. As a result of the transaction M-real’s
turnover will be decreased by about EUR 70 million.

In addition, an efficiency programme has been started at the French
Alizay paper mill, as a result of which the number of personnel at
the mill will be reduced by about 100 persons. The non-recurring cost
of EUR 13 million arising from this weakens the result for the second
quarter.

 “The profitability of our French mills has been for a long period at
a very unsatisfactory level. The efficiency programme at Alizay and
the sale of Pont Sainte Maxence will have a positive effect on M-
real’s result in the future”, says Hannu Anttila President and CEO.

According to Hannu Anttila M-real has now achieved the savings
objective of EUR 200 million set for the savings programme launched
in the spring of 2004. Planning of new savings programmes is already
in progress.


M-REAL CORPORATION

Corporate Communications


For further information please contact Hannu Anttila, President and
CEO, tel. +358 10 469 4343 or +358 50 2398

Subscribe