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Metsä Tissue concludes statutory negotiations in Finland

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On August 19th, Metsä Tissue Corporation concluded statutory negotiations
addressing options for strengthening, securing and improving the profitability
of the company's Baking & Cooking business. 

“We have agreed that production of Baking & Cooking paper at the Mänttä mill
will be partially relocated and all converting will be transferred wholly to
Düren in Germany. Production of greaseproof paper will continue on PM7 at the
Mänttä facility, but the older machine, PM5, will be shut down. All other mill
operations will be streamlined and downscaled to match lower production
volumes,” says Metsä Tissue's CEO, Hannu Kottonen. “The Finnish government's
recently announced plans to amend waste taxation and increase energy taxes and
the foreseeable cost impact of these actions had no influence on our
negotiations,” Kottonen states. 

The negotiations concerned  personnel at Metsä Tissue's Mänttä mill and
personnel in the Baking & Cooking business, affecting roughly 500 employees in
total. The maximum headcount reduction originally foreseen by the company was
approximately 150 employees. The now-finalised negotiations will result in a
headcount reduction of a maximum of 117 employees, 96 of whom are blue-collar
and 21 white-collar employees. Their contracts will end between March and
August next year. 

Metsä Tissue has agreed to support the financial stability and re-employment
prospects of terminated employees by providing a voluntary severance package. 

Last June Metsä Tissue Corporation signed a Memorandum of Understanding to buy
a specialty paper machine (PM5), related equipment and power plant at M-real
Corporation's Reflex mill located in Düren, Germany. With statutory
negotiations now completed, Metsä Tissue intends to continue negotiations with
M-real in order to finalise the deal. 

For further information:

Jori Sahlstén, Regional Operations Director, Northern Eastern Europe and Mill
Manager 
Tel. +358 50 326 7568, jori.sahlsten@metsatissue.com

Marja-Leena Dahlskog, Communications Manager
Tel. +358 10 465 5149, marja-leena.dahlskog@metsatissue.com

Hannu Kottonen, CEO
Tel. +358 10 465 4959, hannu.kottonen@metsatissue.com


Metsä Tissue is a leading tissue paper products supplier to households and
large-scale consumers in Europe. We are also the world's leading supplier of
baking and cooking paper products. Our main brands are Lambi, Serla, Mola,
Tento, Katrin, Fasana and SAGA. We have 3150 employees and production based in
Finland, Germany, Poland, Russia, Slovakia and Sweden. Our turnover is EUR 890
million. Metsä Tissue is part of the Metsäliitto Group.

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