HELSINKI, Finland, May 3, 2011 (GLOBE NEWSWIRE) -- STORA ENSO OYJ STOCK EXCHANGE RELEASE 3 May 2011 at 9.00 EET
Stora Enso's Fine Paper Business Area is re-evaluating its working methods and building a new business model to increase cost competitiveness. According to the plans, Stora Enso would restructure operations at Nymolla Mill in Sweden. At Uetersen Mill in Germany the plan is to restructure operations more towards Speciality Papers and at Oulu Mill in Finland, together with the sheeting plants in Belgium and the United Kingdom, find the most efficient way to utilise the converting capacity and streamline operations.
"The plans announced today would make Stora Enso Fine Paper more flexible and cost efficient, and so better able to meet customer and market expectations. Fine paper demand is still clearly below pre-crisis levels, and there are no signs of sustained recovery. We have been successfully remodelling our operations during the past few years, and now we plan to continue on the chosen path of improving our existing businesses. We are comparing the best practices at all our mills so we can continuously adopt the most efficient ways of working. Similarly, we need to question our way of running the operations. These plans are part of rethinking in Stora Enso, but of course rethink means much more for us, such as new products and services, new solutions with our customers - better solutions for the future," says Hannu Alalauri, EVP, Fine Paper Business Area.
Stora Enso Fine Paper plans to reduce annual costs by approximately EUR 20 million, starting during 2011 with all actions to be completed by the end of the second quarter of 2012. The proposed restructuring measures would affect altogether up to 285 employees in Finland, Sweden, Germany, Belgium and the United Kingdom. Stora Enso will record a cash provision of approximately EUR 16 million as a non-recurring item in its second quarter of 2011 operating profit. The plans would not affect the Business Area's paper production capacities.
The outcome of the plans will depend on the result of the local co-determination procedures. As before, Stora Enso would make every effort in co-operation with local communities to help the affected personnel find new employment opportunities, and all job openings in other Stora Enso units would be available to those affected.
For further information, please contact:
Hannu Alalauri, EVP, Fine Paper Business Area, tel. +358 2046 21228
Ulla Paajanen-Sainio, Head of Investor Relations, tel. +358 2046 21242
Paeivi Kauhanen, Director, Communications, tel. +358 2046 21292
Stora Enso is the global rethinker of the packaging, paper and wood products industry. We always rethink the old and expand to the new to offer our customers innovative solutions based on renewable materials. Stora Enso employs some 26 000 people worldwide, and our sales in 2010 amounted to 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 USA as ADRs (SEOAY) in the International OTCQX over-the-counter market.
STORA ENSO OYJ