Helsinki, Finland, 2011-11-04 10:00 CET (GLOBE NEWSWIRE) -- STORA ENSO OYJ STOCK EXCHANGE RELEASE 4 November 2011 at 11.00 EET
Stora Enso’s Packaging Business Area plans to increase its cost competitiveness and respond to market demand by restructuring its core and coreboard operations in Finland, Germany, the United Kingdom and the USA, and streamlining corrugated packaging production in Finland.
“In core and coreboard markets the main customer is the board and paper industry. Decreased demand for paper mill cores in mature markets has made the market situation tighter, and in the current financial situation the outlook is uncertain. Corrugated packaging markets are very local and closely related to national economies. In Finland demand is still clearly below pre-crisis levels, and there are no signs of sustained recovery. The planned restructuring and streamlining measures, including some development investments, will enable us to better meet customer and market expectations and ensure our competitiveness by being more cost efficient and streamlining our operations,” says Mats Nordlander, EVP, Stora Enso Packaging Business Area.
The planned restructuring measures would reduce approximately 80 employees in corrugated packaging operations in Finland, and approximately 70 employees in core and coreboard operations mainly in Germany, Finland, the United Kingdom and the USA. In addition, the plans include possible temporary lay-offs at corrugated packaging operations in Finland. Stora Enso’s Packaging Business Area plans to reduce annual costs by approximately EUR 6 million, starting during the first quarter of 2012, with all planned actions to be completed by the end of the third quarter of 2012. Stora Enso will record a restructuring provision and an inventory write-down of approximately EUR 4 million in the Industrial Packaging segment in the fourth quarter of 2011 results.
All decisions will be made after the local co-determination negotiations have been concluded. Stora Enso would make every effort in co-operation with local communities to help the affected personnel find new employment opportunities, and all job openings in other Stora Enso units would be available to those affected.
For further information, please contact:
Mats Nordlander, EVP, Packaging Business Area, tel. +46 7033 70890
Ulla Paajanen-Sainio, Head of Investor Relations, tel. +358 2046 21242
Lauri Peltola, Head of Communications and Global Responsibility, tel. +358 2046 21380
www.storaenso.com
www.storaenso.com/investors
Stora Enso is the global rethinker of the packaging, paper and wood products industry. We always rethink the old and expand to the new to offer our customers innovative solutions based on renewable materials. Stora Enso employs some 30 000 people worldwide, and our sales in 2010 amounted to EUR 10.3 billion. Stora Enso shares are listed on NASDAQ OMX Helsinki (STEAV, STERV) and Stockholm (STE A, STE R). In addition, the shares are traded in the USA as ADRs (SEOAY) in the International OTCQX over-the-counter market.
STORA ENSO OYJ