FINNISH speculation that M-real's Sittingbourne paper mill is to close has been dismissed by company secretary David Scudder.

An announcement of job cuts in Germany and Austria had prompted a Helsinki-based firm of analysts to say it believed further profit-boosting measures might threaten the mill, in Mill Way, with closure along with one in France.

This has been robustly denied by Mr Scudder who said: "There has been speculation about the Sittingbourne mill for many, many years.

"There is no truth at all in this rumour that the mill is threatened with closure to the best of my knowledge and belief so I can scotch it with absolute certainty."

M-real is Europe#s third largest paper merchant and its Sittingbourne operation produces in excess of 200,000 tonnes of coated and uncoated paper annually.