Stora Enso is planning restructuring actions to strengthen the group’s long-term competitiveness, which would decrease Stora Enso’s annual sales by approximately EUR 380 million, based on the 2022 figures. As part of the restructuring plans, the company is closing the Sunila site in Finland, both production lines at the De Hoop site, one production line at the Ostrołęka site, and the Näpi sawmill in Estonia.
Jun 15, 2023
Stora Enso has announced restructuring plans to strengthen the group’s long-term competitiveness, improve profitability and focus capital allocation in strategic growth markets. The planned restructuring actions, combined with previously initiated negotiations in the packaging materials division, would result in total reductions of approximately 1,150 employees. Stora Enso will initiate change negotiations regarding a planned reduction of office employees within its group functions. Approximately 1,300 employees are within the scope of the Group function negotiations, with a planned reduction of approximately 300 employees. Stora Enso is also taking the next step in driving a decentralized operating model targeting increased customer centricity, business focus and cost reductions. The planned restructuring actions would decrease Stora Enso’s annual sales by approximately EUR 380 million, based on the 2022 figures.
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Under new conditions in the Finnish wood market, resulting in significantly higher wood costs, the Sunila site is no longer cost-competitive. Stora Enso will start negotiations with employees at its Sunila pulp production unit to permanently cease pulp production and lignin extraction. The site has an annual capacity of 375,000 tonnes of long-fiber pulp, employing approximately 270 people. The planned closure would take place during the second half of 2023 and affect an estimated 250 employees, decreasing Stora Enso’s annual market pulp capacity by 13%. As a consequence of the overcapacity in the European containerboard market, Stora Enso is also proposing to permanently close down both production lines at the De Hoop site in the Netherlands and one of the four production lines at its Ostrołęka site in Poland. These planned closures would enable an improved market balance for containerboard volumes. The De Hoop site employs approximately 185 people and has a total annual capacity of 380,000 tonnes of containerboard, honeycomb and plasterboard. Moreover, Stora Enso plans to close down its Näpi sawmill in Estonia due to reduced long-term raw material availability, increased wood costs and low profitability. The Näpi sawmill has an annual capacity of 50,000 m3 of sawn timber, 180,000 m3 of further processed wood products and 25,000 tonnes of pellets.
