Stora Enso Plans to Restructure Coated Magazine Paper Operations
Helsinki, Finland, 08 February 2012 -- Stora Enso’s Printing and Reading Business Area plans to increase its cost competitiveness by restructuring coated magazine paper operations at the Corbehem mill in France, Veitsiluoto mill in Finland, and Kabel mill in Germany.
“The operating environment in coated magazine paper has remained challenging. The plans announced today would respond to these challenges by improving cost efficiency and productivity. The planned streamlining of coated magazine paper operations, including investments in quality, productivity and energy saving, would enable us to better meet customer and market expectations, and improve profitability,” said Juha Vanhainen, EVP, Stora Enso Printing and Reading Business Area.
Stora Enso Printing and Reading plans to reduce annual costs by approximately EUR 48 million, with the full impact achieved from the third quarter of 2013 onwards. The plans also include investments in the Corbehem, Veitsiluoto, and Kabel mills totalling EUR 18 million.
The proposed restructuring measures would reduce the number of employees in coated magazine paper operations by up to 110 workers in total. All the actions are planned to be completed by the end of 2012. Stora Enso will record a cash provision of approximately EUR 5 million and a fixed asset write-down of approximately EUR 1 million in the Printing and Reading segment as a nonrecurring item in the first quarter of 2012 results.
The outcome of the plans will depend on the result of the local co-determination procedures. Stora Enso would work in co-operation with the local communities to help affected personnel to find new employment opportunities, and all job openings in other Stora Enso units would be available to those affected.
Stora Enso produces biomaterials, paper, packaging and wood products and offers customers innovative solutions based on renewable materials. Stora Enso employs some 30 000 people worldwide, and had sales in 2010 of EUR 10.3 billion. Stora Enso shares are listed on NASDAQ OMX Helsinki (STEAV, STERV) and Stockholm (STE A, STE R). In addition, the shares are traded in the United States as ADRs (SEOAY) in the International OTCQX over-the-counter market.