Stora Enso to End Newsprint Production at Its Maxau Mill
Helsinki, Finland, 07 September 2010 -- (GLOBE NEWSWIRE) -- Stora Enso will, subject to decisions by the respective German corporate bodies, permanently shut down the 195,000 metric tons/year newsprint machine at Maxau Mill in Germany by the end of November 2010. Newsprint production at Maxau will end due to weak European market outlook and high production costs. Sales prices have fallen significantly while recovered paper and wood costs have risen strongly. As a result, there is no realistic prospect of newsprint production at Maxau mill becoming profitable again in the foreseeable future.
"The European newsprint market is structurally heavily oversupplied and there has been no substantial recovery in demand since consumption collapsed in early 2009. The outlook for demand is negative too. In addition, the availability of wood and recycled fibre in Germany has been limited, so costs have been rising fast recently," said Juha Vanhainen, executive vice president, Publication Paper Business Area.
The permanent shutdown of the newsprint machine at Maxau mill will reduce European newsprint capacity by approximately 1.5%.
The shutdown will affect about 180 of the 617 people employed at the mill. Stora Enso is working on a social plan for the employees affected by the restructuring measures. The two uncoated magazine paper machines, with total annual capacity of 530,000 metric tons, at Maxau mill will remain in operation.
Stora Enso expects the permanent shutdown of the newsprint machine at Maxau to have the following financial effect on the Newsprint segment:
Stora Enso is a global paper, packaging, and wood products company producing newsprint and book paper, magazine paper, fine paper, consumer board, industrial packaging, and wood products. The Group is the world leader in forest industry sustainability. The company offers solutions based on renewable raw materials. Stora Enso is listed in the Dow Jones Sustainability Index and the FTSE4Good Index. Stora Enso employs some 27,000 people worldwide, and had sales in 2009 amounting to EUR 8.9 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 USA as ADRs (SEOAY) in the International OTCQX over-the-counter market.