M-real to invest at Simpele

M-real to invest at Simpele

Press release 2.3.2005

M-real will invest EUR 60 million in Simpele mill's board production. The
investment will ensure that Simpele maintains its current strong market
position also in the future. The improved grades of the well-appreciated and
reliable high-performance paperboards - Simcote and Simwhite - will continue to
be of the highest quality. The availability of the products and service of
sheeted products will also be improved. M-real Simpele is one of M-real
Consumer Packaging's core production assets and will, as a result of the
investment, retain its position as one of the most cost competitive and
efficient production units in Europe. 
 
The improvements will include a new reeler, a rewinder as well as reel and
sheet packaging equipment. Sheeting capacity will also increase, resulting in
better product availability. The total capacity of the board machine will
increase by 45,000 t/a to 215,000 t/a. 
 
The machine will be upgraded in stages with only one shut-down. The start up
will take place in spring 2006. 
 
After the upgrade, the quality of the fully coated folding boxboards Simcote
and Simwhite will be enhanced. The visual appearance, stiffness and bulk of the
product will all improve. The upgraded products will offer the customers
improved printing surface and consistency, resulting in better runnability,
convertability and overall efficiency. 
 
Consumer Packaging is one of M-real's core business areas. It offers high
performance paperboards and papers for beauty care, healthcare, food,
cigarettes, consumer durable and graphic industries. In addition, Consumer
Packaging is world's leading producer of wallpaper base papers. 
 
M-REAL CORPORATION
 
Hannu Kottonen
Executive Vice President
Consumer Packaging
 
For further information please contact:
 
Hannu Kottonen, Executive Vice President, Consumer Packaging
tel. + 358 (0)10 469 4900, Mobile +358 (0)500 532 235
 
Jukka Kettunen, Senior Vice President, Production and Technology
tel.  010 463 3725, Mobile +358 (0)50 598 8506
 
Juha Kovanen, Vice President and Mill Manager, Simpele
tel. +358 (0)10 464 48 322, Mobile +358 (0)50 598 8509
  
 
Information about M-real Simpele 
 
The Simpele mill is part of M-real's Consumer Packaging Business Area and one
of M-real's core production assets. The mill has two machines - board and
paper. The board machine produces folding boxboards for end uses such as food
packaging and graphical applications. The paper machine produces one-side
coated papers for food packaging and other flexible packaging, wet-glue
labelling and self-adhesive laminates. 
 
Simpele's products, using top-quality raw materials, are designed to meet the
high quality packaging needs of the brand owner industry. Examples of important
end-use areas for Simpele coated folding boxboards are branded food, CD/DVD
folders and cards. 
 
The mill is situated in Simpele, South Carelia in south-east Finland, some 300
km north-east of Helsinki. M-real Simpele's board machine produces up to
170,000 t/a of folding boxboard. Groundwood pulp production is integrated to
the mill. Mill effluent is treated in a two-stage biological treatment plant.
Local regulations are closely followed in the process. 
 
The mill has ISO 9001 Quality Certificate, ISO 14001 and HACCP Certificate for
its products. The board mill employs some 345 people and the Simpele mill 460
in total. 
 
Simpele's products are available globally through M-real's sales network. Most
of the mill's production is exported. The largest market area is Europe
followed by Asia. 
 
M-real Simpele's board products
 
Simcote is a fully coated folding boxboard suitable for offset, flexo and
gravure printing. It provides users with the consistency, superior stiffness
and bulk as weas excellent sensory properties required, for example, in
packaging for food and healthcare products. Simocote's enhanced moisture
resistance makes it ideal for food packaging. Simcote is available in sheets
and reels. The grammage range is from 220 - 350 g/m2. 
 
Simwhite is a fully coated bleached folding boxboard with coated back, suitable
for offset, gravure and flexo printing. It provides its users with the
consistency, high brightness and stiffness as well as good sensory properties
required, for example, in demanding food packaging and graphical applications.
Simwhite is available in sheets and reels. The grammage range is from 200 - 400
g/m2. 
 
M-real Simpele's paper products
 
Simcastor Plus and Simcastor Plus ES are one-side coated supercalendered
bleached kraft papers. The products are recommended for food packaging and
other flexible packaging. Simcastor Plus and Simcastor Plus ES are available in
a basis weight range of 40 -110g/m2. 
 
Simcastor Plus HS is one-side coated supercalendered, bleached semi-wet kraft
paper, suitable for wet-glue labelling. Simcastor Plus HS is available in a
basis weight range of 70 - 90 g/m2. 
 
Simkraft Special is one-side coated bleached kraft paper for release liners.
Simkraft Special is available in basis weights of 76 and 88 g/m2.