The company says it will instead increase paper capacity at its more efficient Husum mill in Sweden.
“Profitability of coated paper production is very weak due to the worsened market situation and the structural overcapacity in Europe. The situation is not expected to materially improve in the future either, due to which we are planning to reduce our coated paper production and to focus it to our most efficient unit in Husum,” said M-real CEO Mikko Helander in a statement.
The company hopes the restructuring will help achieve annual savings of 20 million euros. Some 370 people currently work at the mill.