HELSINKI, Finland, Sept. 23, 2003 (PRIMEZONE) -- Stora Enso (NYSE:SEO) today announced that Stora Enso has launched a restructuring programme at its Publication Paper mill at Corbehem, France to secure the site's long-term competitiveness in continuing depressed market conditions.
The programme, which will be implemented in stages during 2003-06, has been agreed with the workers' council representatives and has three objectives:
(1) a major reorganisation of the whole mill, including a decrease of some 160-170 employees in the headcount by 2006, the majority of the decrease occurring before the end of 2004. The mill currently employs about 900 people;
(2) a variable-cost reduction plan to improve significantly the productivity and efficiency of assets;
(3) investment in paper machine 5, raising its annual capacity by 55 000 tonnes to 305 000 tonnes of light-weight coated magazine paper (LWC) in 2004, as already announced in December 2002.
A provision of EUR 15.3 million for redundancy payments and other costs related to this restructuring programme will be entered as a non-recurring item in the results for the third quarter of 2003.
For further information, please contact Tim Laatsch, Senior Vice President, Communications, Stora Enso North America, tel. 715 422 4023 Scott Deitz, Vice President, Investor Relations, Stora Enso North America, tel. 715 422 1521
www.storaenso.com www.storaenso.com/corbehem
Stora Enso is an integrated paper, packaging and forest products company producing publication and fine papers, packaging boards and wood products, areas in which the Group is a global market leader. Stora Enso sales totalled EUR 12.8 billion in 2002. The Group has some 42 500 employees in more than 40 countries in five continents and about 15 million tonnes of paper and board annual production capacity. Stora Enso's shares are listed in Helsinki, Stockholm and New York. Stora Enso Oyj Business ID 1039050-8