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.
