M-real Oyj, Finland's third-biggest papermaker, will close two paper machines in western Germany as it proceeds with a plan to reduce overcapacity and cut 140 million euros ($181 million) in costs.
The machines at the Gohrsmuhle mill, which produce 100,000 metric tons of coated paper a year, will be closed by the end of February, the Espoo, Finland-based company said today in a stock exchange statement.
M-real plans to cut 500 jobs to help reverse years of losses. It's shutting one mill in Sittingbourne, England this month and may close another plant in Wifsta, Sweden, which would take its fine-paper production capacity cuts to 485,000 tons.
The Finnish company joins Stora Enso Oyj, which has also shut mills in Germany to try to break a glut in production.
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