Stora Enso to Permanently Shut Down Two Newsprint Machines in Sweden - Papermart

Stora Enso to Permanently Shut Down Two Newsprint Machines in Sweden

February 5, 2013

Stora Enso plans to restructure its operations through the permanent shutdown of two newspaper machines in Sweden. Stora Enso also plans efficiency improvements in the Printing and Reading customer service and the Building and Living Business Area.

The profitability improvement actions are planned to reduce annual costs by EUR 54 million and reduce the number of employees by approximately 600 altogether. Printing and Reading plans to close capacity in Sweden and reorganise its Customer Service Centres.

Printing and Reading plans the permanent shutdown of PM 2 at Hylte Mill in Sweden with annual capacity 205,000 tons of newsprint and PM 11 at Kvarnsveden Mill in Sweden with annual capacity 270,000 tons of newsprint in the second quarter of 2013. This represents 3.4% of European newsprint capacity.

In addition, Stora Enso plans to create a common platform for all its Printing and Reading sales desk, order handling and logistic services in Europe to improve customer service. These processes currently handled at seven customer service centres, mills and logistic service centres will be centralised into five customer service centres located in Finland, Sweden, Germany, Belgium and the UK. It is planned to establish a separate Logistics Service Centre for overseas business in Gothenburg, Sweden to serve all Stora Enso’s Business Areas.

Besides the plans includes downsizing of Sollenau Sawmill in Austria, transfer of some production from the high-cost Pfarrkirchen Mill in Germany to the low-cost Zdirec Mill in the Czech Republic and efficiency improvement actions at Kitee and Honkalahti sawmills in Finland.