Paperbased packaging producer M-real said the company is planning to cut its paper capacity as a result of a larger than expected fall in Q3 profits to €6m ($8m) from €54m a year ago.

The company announced that it would close more loss-making paper production units including a fine paper machine in Aanekoski, Finland, in an effort to boost profits.

M-real also plans to restructure its coated paper business at the Husum mill in Sweden, where the annual coated paper capacity will be increased from 285,000t to 340,000t.

The reel production of Äänekoski paper machine is planned to be transferred to Husum.

The company expects the restructuring will help it gain around €20m in annual operating results and reduce its paper capacity by 700,000t, which is about 44%.