M-real - Company Announcement

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

M-real Corporation Stock Exchange Release on 22 December 2011 at 9.30 EET


M-real Corporation, part of Metsäliitto Group, has concluded the statutory
negotiations at the Äänekoski mill. In order to improve the profitability of
its coated paper business M-real started on 9 November 2011 statutory
negotiations concerning the potential closure of the Äänekoski paper machine
and conversion of the mill's sheeting capacity entirely to folding boxboard
sheeting. M-real released a stock exchange bulletin on 2 November 2011
concerning these plans. 

Following the conclusion of the statutory negotiations, M-real has decided that
the Äänekoski paper machine, with an annual capacity of approximately 200 000
tonnes of coated fine paper, will be closed by the end of 2011. The mill's
sheeting capacity will be converted fully to folding boxboard. Planning work
related to the sheeting capacity conversion is on-going. 

The related personnel reduction at the Äänekoski mill is a maximum of 169
people. In close cooperation 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 business areas. 

M-real continues to produce coated papers at the Husum mill in Sweden.
Äänekoski paper machine's reel production will be transferred to Husum. The
annual coated paper capacity at Husum will be increased from 285 000 tonnes to
340 000 tonnes during 2012. 

Also in the future M-real's coated papers will be sold by Sappi Fine Paper
Europe. Based on the above measures, M-real's annual coated paper capacity is
reduced by approximately 145 000 tonnes. M-real's annual sales will reduce by
approximately EUR 60 million and operating result will increase by
approximately EUR 20 million based on the results of the coated paper
production in 1-3Q 2011. The full annual financial impact of the measures is
expected to materialise from 2012 onwards. 

Consumer Packaging's 4Q 2011 operating result includes approximately EUR 25
million non-recurring impairments and cost provisions related to the measures
in Äänekoski. Total net cash impact of the measures is expected to be slightly
positive when taken into account the reduction of working capital. 


M-REAL CORPORATION


For further information, please contact:
Matti Mörsky, CFO, tel. +358 10 465 4913
Juha Laine, Vice President, Investor Relations and Communications, tel. +358 10
465 4335