Paper machines 1 and 5 are expected to close at the Reflex Zanders mill, taking out around 80,000 tonnes of annual capacity.

Production of carbonless papers will be transferred to the Gohrsmühle mill, while converting will remain at Reflex, which will also continue to produce premium fine and digital imaging papers.

The organisation and management model in M-real Zanders will also be streamlined.

Mikko Helander, chief executive of M-real, which is part of the Metsäliitto Group, said: "The production conversion in M-real Zanders has been implemented according to targets.

"Despite the unfavourable general market situation, the new uncoated fine papers were successfully launched in a short time and customer feedback has been very positive."

He added that work to improve the profitability of M-real Zanders would continue, based on the measures announced.

Implementation of the measures is planned to occur during the first half of next year.

The move is a result of a fall in demand and increases in raw material costs that have hit paper manufacturing during the past year, M-real said.

In August, the paper manufacturer said around 103 staff would be affected by the integration of its pulp and board divisions at the Kemiart Liners mill in Finland.