HELSINKI, Finland, Nov. 4, 2005 (PRIMEZONE) -- Metso Paper received in 2002 an order for a rebuild of an extensive printing and writing paper line from Papiers Gaspesia in Chandler, Quebec, Canada. The rebuild was expected to be completed in mid 2004. The project was, however, stopped early 2004 due to problems in financing. Consequently Metso Paper's accounts receivable were written off by EUR 15 million in total. The write down was included in the 2004 financial result.
According to an arrangement made in October 2005, the Papiers Gaspesia mill, including the buildings, equipment and estate, will be transferred to the development company owned by the city of Chandler. In connection with the arrangement, the previous owners of Papiers Gaspesia will pay creditors and the city a part of the liabilities and expenses. In connection with the arrangement Metso Paper has received about EUR 4 million lump-sum payment which will improve operating profit during the last quarter of 2005. Metso Paper has no remaining obligations relating to the project.
Metso is a global technology corporation serving customers in the pulp and paper industry, rock and minerals processing, the energy industry and selected other industries. In 2004, the net sales of Metso Corporation were approx. EUR 4 billion, and it has some 22,000 employees in more than 50 countries. Metso's shares are listed on the Helsinki and New York Stock Exchanges.