UPDATE 1-Sappi may suspend mill in Finland on lower demand

* Some 150 workers may be affected

* Other operations in Finland not concerned

(Adds detail)

JOHANNESBURG, Oct 22 (Reuters) - South African paper maker Sappi (SAPJ.J) may close its 210,000 tonnes per year Kangas mill in Finland due to lower demand for coated magazine paper and overcapacity in the sector, it said on Thursday.

Sappi said it had began consultations with the 150 workers employed at the site and said that any possible redundancies would happen by the end of the year.

"The aim of this process is to identify the best way of improving company profitability, which may include a full closure of Kangas mill," it said in a statement.

"The continued level of downtime is no longer considered viable and it is therefore necessary to review production capacity."

The global paper industry has struggled for nearly a decade to climb out of a slump caused by overcapacity, soft demand, low prices and weak earnings and the global downturn has further knocked demand for paper, as print advertising has dived.

Should the mill be closed, Sappi will supply its customers from its other operations in the country and beyond.

Its other operations in Finland remain unaffected by the potential closure, it said. (Reporting by Agnieszka Flak)