S.Africa's Mondi to close paper mill in Finland

(Adds company comment)

HELSINKI, April 10 (Reuters) - South African paper maker Mondi (LSE: MNDI.L - news) said on Friday it is planning to close its loss-making mill in Lohja, Finland, which employs 150 people.

Mondi bought the mill in 2008 and decided to close part of its production capacity last year. The plant makes speciality papers for packaging, food services, the hygiene and medical industries.

"The reason for the closure is the operation's prolonged unprofitability," Mondi said in a statement.

Negotiations with workers' representatives have started, and the plan is to stop production in June.

"This is the worst possible news for the mill's workers... The negotiations must address the grounds and the impacts of the planned measures, as well as alternative steps," said Jari Uschanov from trade union Pro.

The Finnish paper industry has lost thousands of jobs in recent years as companies such as Stora Enso (LSE: 0CXC.L - news) and UPM (Taiwan OTC: 4752.TWO - news) -Kymmene closed several mills, due largely to the decline in demand for newsprint and magazine paper. (Reporting by Jussi Rosendahl; editing by Jason Neely and David Evans)