After announcing it would absorb a €347 million impairment charge in Q3, Finland-based Stora Enso Oyj then outlined plans to lay off up to 1,100 workers as it cuts production and closes mills, domestically. The paper giant currently has 29,000 employees.
“In the past two years, we have transformed the group to improve our long-term financial returns, which are the basis for the future of any company. We have tried to move as fast as possible, but it has not been fast enough,” said Stora Enso CEO Jouko Karvinen. “The operating environment has deteriorated faster than ever before: long-term structural cost inflation in fibre and energy costs has recently been followed by dramatic weakening in demand. As we cannot change this operating environment, we will instead continue to change Stora Enso so we can operate in the new environment.”
Units Stora Enso plans to permanently close down by mid-2010:
• Sunila Pulp Mill: annual production capacity 375,000 tonnes of softwood pulp, with
around 250 employees;
• Imatra Mills PM 8: annual production capacity 210,000 tonnes of uncoated fine paper, with around 140 employees;
• Tolkkinen Sawmill: annual production capacity 260,000 m3 of sawn wood, with
approximately 55 employees.
Units Stora Enso is provisionally planning to permanently close down by the end of
2010:
• Varkaus mills: annual production capacity 290,000 tonnes of newsprint and directory papers, 310 000 tonnes of uncoated fine paper, 270 000 m3 of sawn wood; approximately 630 employees.
Units Stora Enso divests in early 2010:
• Kotka mills: annual production capacity 185,000 tonnes of machine-finished coated paper (MFC) paper, 175 000 tonnes of laminating paper and Imprex core stock, 250 000 m3 of sawn wood; approximately 530 employees.
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