Minister says government is not to intervene in Stora Enso closures

Jyri Häkämies

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In an interview with the Finnish regional daily Kaleva Defence Minister Jyri Häkämies (National Coalition Party), whose portfolio also covers matters relating to the ownership steering of state-owned companies, said that the government cannot intervene in Stora Enso’s planned downsizing in Finland.
      The Finnish pulp and paper company Stora Enso announced a week ago its intention to close down permanently the Summa paper mill and one magazine paper machine at the Anjala mill, as well as its pulp mill in Kemijärvi.
      The total number of jobs lost in Finland will amount to more than 1,200 employees. Further jobs will go in Sweden.
     
The voting interest of the State of Finland in Stora Enso is about one-fourth, and hence Jouko Skinnari (SDP), the Chairman of the Parliamentary Commerce Committee, demanded on Sunday that the state should undertake to summon an extraordinary general meeting.
      On Monday, Timo Kalli, the Chairman of the Centre Party’s parliamentary group, labelled such demands as populism, while Minister Häkämies rejected the idea in Tuesday’s Kaleva.
      "According to the Finnish Companies Act, the board of the company is unambiguously in charge of decision-making", commented Häkämies.
     
Häkämies admits that the situation at Stora Enso puts the state ownership in a public company in a bad light. Nevertheless, he does not feel that the state should abandon its ownership in public companies entirely.


Previously in HS International Edition:
  Finnish government allocates funds to areas hit by Stora Enso closures (26.10.2007)
  Stora Enso to shut down two factories in Finland and one in Sweden - 1,400 jobs to go (25.10.2007)

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