Stora Enso to restructure coated magazine paper operations at its Corbehem, France, mill, Veitsiluoto mill in Kemi, Finland, Kabel mill in Hagen, Germany; plans aim to improve cost efficiency, productivity with reduced annual costs, number of employees
February 8, 2012
– Stora Enso's Printing and Reading Business Area plans to increase its cost competitiveness by restructuring coated magazine paper operations at Corbehem Mill in France, Veitsiluoto Mill in Finland and Kabel Mill in Germany.
"The operating environment in coated magazine paper has remained challenging. The plans announced today would respond to these challenges by improving cost efficiency and productivity. The planned streamlining of coated magazine paper operations, including investments in quality, productivity and energy saving, would enable us to better meet customer and market expectations, and improve profitability," says Juha Vanhainen, EVP, Stora Enso Printing and Reading Business Area.
Stora Enso Printing and Reading plans to reduce annual costs by approximately EUR 48 million, with the full impact achieved from the third quarter of 2013 onwards. The plans also include investments in Corbehem, Veitsiluoto and Kabel mills totalling EUR 18 million. The proposed restructuring measures would reduce the number of employees in coated magazine paper operations by up to 110 in total. It is planned that all the actions would be completed by the end of 2012. Stora Enso will record a cash provision of approximately EUR 5 million and a fixed asset write-down of approximately EUR 1 million in the Printing and Reading segment as a non-recurring item in the first quarter of 2012 results.
The outcome of the plans will depend on the result of the local co-determination procedures. Stora Enso would work in co-operation with the local communities to help affected personnel to find new employment opportunities, and all job openings in other Stora Enso units would be available to those affected.