Paper manufacturer M-real cuts jobs in Germany and Britain
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The Finnish paper and paperboard manufacturer M-real has announced the elimination of nearly 400 jobs at factories in Germany and Britain.
On Tuesday the company said that it would phase out 330 jobs at the M-real Zanders factory in Germany by the end of 2006. The factory manufactures bond paper and coated paper.
In addition, the company has agreed with local trade unions to extend the working week to 40 hours without separate compensation. Planned wage increases for next year have also been cancelled.
Zanders currently employs 1,800 people.
In Britain, M-real is enacting rearrangements at its subsidiary Map Merchant, which are to lead to the elimination of 55 jobs.
The cuts are part of efforts to save EUR 200 million. The company believes that the moves will improve its profitability by EUR 30 million this year.
M-real expects that the cuts at Zanders will lead to savings of EUR 20 million in personnel costs by the end of 2006. However, the company will first incur severance costs of EUR 24 million for the move.
The rearrangements at Map Merchant will cost EUR 6 million this year, and other smaller structural changes will bring one-off costs of about EUR 10 million.
M-real acquired ownership of Zanders in 2001. Before Tuesday’s announcement, the company had eliminated about 900 jobs at the factory.
Helsingin Sanomat
