* Plans to sell Gorsmuehle paper mill
* To cut production lines if sale not possible
* Shares up 3.9 percent
* Q1 results due at 0900 GMT
(Adds details, quote, share reaction)
HELSINKI, May 4 (Reuters) - Finnish paper and board maker M-real said on Wednesday it planned to sell its Gorsmuehle mill in Germany in an attempt to improve profitability, sending its shares higher.
If a sale was not possible, M-real said it would cut production there instead.
"In case the divestment would turn out to be unsuccessful M-real commences a process to discontinue the uncoated fine and the unprofitable parts of the speciality paper operations at Gohrsmühle mill," the company said.
"Should the closures materialize, Gohrsmuehle mill would only produce cast coated label and packaging products."
M-real also planned to discontinue its carbonless paper converting operations at the Reflex mill, also in Germany.
The measures would cut production capacity by about 500,000 tonnes, the papermaker said.
M-real shares were up 3.6 percent at 3.16 euros after the announcement.
The measures, together with sale or closure of Alizay mill in France, would cut M-real's annual sales by 390 million euros and increase its operating profit by about 60 million euros, the company said. The full financial impact would be seen from 2013 onwards.
"These planned measures are necessary to raise the company's profitability to the target level," M-real's Chief Executive Mikko Helander said a statement. The company said the plants had been loss-making for a long time.
The firm would take a one-time hit of about 170 million euros ($251.8 million) from the sale or closure of the production lines, according to preliminary results, it said. Net cash costs were estimated at 50 million euros.
(Reporting by Jussi Rosendahl and Sakari Suoninen; Editing by Erica Billingham)