M-real Corporation is planning new internal profit improvement measures of which the main ones are the following:

- Plan to permanently shut down the Alizay pulp mill
- EUR 22 million investment at Husum mill to improve its energy efficiency
- New EUR 20 million internal profit improvement programme covering all M-real’s business areas

"These measures would form a major step in the re-engineering of our paper businesses addressing the most significant internal efficiency problem areas we have. Our profitability would clearly improve after the contemplated implementation of these measures. In addition to our internal improvements, the strategic review of our paper business continues with an aim to further support our profitability as well as to improve the business environment of European paper industry," says Mikko Helander, CEO of M-real.

Alizay’s integrated site includes a pulp mill, an uncoated fine paper machine and three paper converting lines. Alizay’s pulp mill has for a long time been unprofitable and the pulp quality is not fully in line with market requirements. Additionally, major investments would be needed during the coming years to fulfil environmental requirements. The pulp mill has been temporarily shut down since March 2009. The production of recycled fibre based office papers has increased since late 2008 and it currently corresponds to approximately half of the total paper production in Alizay. The need for chemical pulp in the paper production has thus clearly decreased. In the future M-real aims at increasing the volumes of recycled fibre based products in Alizay.