Metsä Board to close down its wallpaper base machine in Kyro
Metsä Board, part of Metsä Group, announced on 4 August 2016 that it was planning to close down the wallpaper base machine (PM3) located at its Kyro mill in Hämeenkyrö, Finland, and to discontinue its loss-making wallpaper base production.
In 2015, sales from Kyro’s paper business totalled EUR 50 million, and the operating result was EUR -5 million.
The statutory labour negotiations, which affected all of the 250 people, have been completed. As a result, the Kyro mill wallpaper base machine PM3 will be closed down and the number of personnel at the mill will decrease by 94 people.
About the closure
Metsä Board’s third quarter result is estimated to include non-recurring net costs of around EUR 9 million related to the closure. The closure is estimated to have a positive cash impact of around EUR 10 million, the majority of which consists of working capital released during the fourth quarter.
The folding boxboard machine with annual capacity of 190,000 tonnes will remain at the Kyro mill, producing premium packaging board for beauty and healthcare products and graphics end uses, among other things. In addition, Hämeenkyrön Voima’s biopower plant producing heat and electricity is located in the mill area.