Brussel, Belgium, 02 November 2011 -- M-real Oyj, which produces the Galerie Art range of wood-free coated reels and sheets for Sappi Europe, today announced that it will initiate a consultation process with the employees of its Äänekoski mill in accordance with Finnish labor law. Such consultation might result in the definitive closure of the mill's paper machine 2 (PM 2). Sappi Europe has therefore established a contingency plan to ensure that it maintains an uninterrupted supply of products to its customers.

Sappi Europe and M-real Oyj have agreed that, in case of a cessation of production at the Äänekoski mill, the supply of Galerie Art wood-free coated reels would be transferred to M-real’s Husum mill in Sweden. Sappi Europe would remain the exclusive seller of coated paper produced by M-real’s Husum mill.

With regard to the supply of Galerie Art wood-free coated sheets produced at the Äänekoski mill, this production would be transferred to other Sappi sites in Europe.

“I can assure our customers of the Galerie Art product range, and in particular our large customer base in the Nordic, Baltic, and Russian markets, that we remain fully committed to the continuation of this business and that we do not anticipate any supply interruptions, regardless of the outcome of the consultation process," said Marco Eikelenboom, director Marketing & Sales at Sappi Europe.