HELSINKI (News release) -- Stora Enso has completed the co-determination negotiations concerning closing down the pulp and paper production at its Veitsiluoto site in Finland. The closure will take place during the third quarter of 2021. As a result of the negotiations, 550 people will be permanently laid off. Some 28% of the redundancies can be managed through pension arrangements.
In April 2021, Stora Enso announced a plan to permanently close down pulp and paper production at its Kvarnsveden and Veitsiluoto sites due to the declining paper market. As a result of the co-determination negotiations regarding the Veitsiluoto site, the three paper machines, chemical pulp and groundwood production, and the sheeting plant will be closed permanently. The sawmill will continue operating at the site within the Wood Products division and employ some 50 persons. Pulp and paper production at Veitsiluoto is estimated to cease during the third quarter of 2021.
The co-determination negotiations concerning the Kvarnsveden site in Sweden are still ongoing.
Due to the closure decision, 550 people will be permanently laid off at the Veitsiluoto site. Of these employees, 440 work in the Paper division and 110 at the maintenance company Efora. The initial estimate of the maximum number of employees affected was 670 people. A maximum of 21 people in Efora's engineering business unit in Veitsiluoto will be transferred to the engineering company Etteplan in a transfer of undertakings on 1 August 2021. The redundancies will mostly take place by the end of January 2022.
Stora Enso will be working closely together with its other company locations, the City of Kemi and other stakeholders to support re-employment and re-training of the affected employees. Our support will include outplacement services as well as individual and group training for re-employment and re-training. We will also offer relocation support for people who transfer to other locations for work, and financial support for employees starting up their own companies. 28% of the redundancies can be managed through pension arrangements.
Stora Enso has initiated a project to find future options for the Veitsiluoto site. An external advisor will be assigned to identify the different alternatives and to compare their feasibility. The process is coordinated with the Ministry of Economic Affairs and Employment, the City of Kemi and other partners. The Veitsiluoto site has many advantages for future use, including strong industrial infrastructure with a deep-sea harbour, a connection to the national electricity grid, access to renewable energy with potential for expansion, cooling capacity from the sea, and availability of clean water.
Stora Enso continues to produce woodfree uncoated (WFU) office papers at the Nymölla site in Sweden.