M-real Sells Paper Mills to South Africa

Forest company M-real is selling its two paper mills in Finland, located in Lohja and Jyväskylä. The company intends to sell its entire graphic paper business operations.

Finland's third-biggest papermaker plans to focus on packaging board production. On Monday, M-real shares shot up by 20 percent in Helsinki on the news.

In a deal worth 750 million euros, M-real will sell off the division to South African forest company Sappi Ltd.

In addition to the Kirkniemi Mill in Lohja and the Kangas Mill in Jyväskylä, the deal also includes plants at Stockstadt in Germany and Biberist in Switzerland.

The aggregate production capacity of the four coated fine paper mills totals 1.9 million tonnes of paper annually. Together they lost 30 million euros in the first half of this year.

Some mills remain outside the deal including the Äänekoski Board Mill in central Finland.