UPDATE 1-Myllykoski to shift Czech investment to Germany

(Adds details, background)

HELSINKI, Oct 30 (Reuters) - Finland's Myllykoski said on Monday it had scrapped plans for a new paper mill in the Czech Republic and would shift the investment instead to Plattling, Germany.

Myllykoski cited the permit process and energy markets for the decision against building the mill in the Czech town of Opatovice.

"We will move the project planned in the Czech Republic to Plattling. We will not do both projects," Chief Financial Officer Heikki Raty told Reuters. "The plans in the Czech Republic are buried."

The company had said earlier this month it would invest 450 million euros ($573 million) in a mill in the Czech Republic, which was to employ 250 people.

But Czech media had previously reported the Finnish firm might shift the investment to another country if it were to face major hurdles.

Myllykoski also said it planned to close its 230,000-tonne capacity coated publication paper plant in Dachau, Germany, by the middle of next year to cut overcapacity. ((Reporting by Sakari Suoninen, editing by Rex Merrifield/Greg Mahlich; tel Helsinki Newsroom +358 9 6805 0240; fax: +358 9 6802284; e-mail: sakari.suoninen@reuters.com)) ($1=.7860 Euro)

Keywords: TIMBER MYLLYKOSKI CZECH