Stora Enso begins an internal review of its paper business due to decline in European demands as readers opt for digital devices.
July 23, 2016
The Finnish manufacturer of paper, pulp, and packaging, Stora Enso has started an internal review for managing its paper division whilst facing the issue of increased cost and decreased demand. Also, the company wants to create a future proof structure for paper. Its rivals including UPM-Kymmene has already shut down dozens of paper mills due to sharp decline in European demand leaving thousands of employees jobless.
Huge numbers of readers are opting for digital devices over the paper ones which results in the urgent need of restructuring or consolidation. European demand for graphic papers has also fallen considerably in the past decade, making people reluctant to make huge investments in this business. The Stora Enso invested in production of packaging board which includes products with brighter outlook. Furthermore, as the company bears the cost for starting up a new board mill in China, the experts forecast lower profit for the third quarter due to this new proposal and maintenance shutdowns.