Stora Enso to close more mills in Finland

The forest industry company Stora Enso plans to close down two installations on the south coast of Finland: the Sunila pulp mill in Kotka and the Tolkkinen sawmill near Porvoo.
      The company is also considering the possible closure of its mills in Varkaus in the east of the country.
      The Sunila pulp mill is to be closed down in the second quarter of 2010, and the Tolkkinen sawmill is to close by the end of 2009. Temporary shutdowns are to continue at other sawmills.
      The company says that orders for uncoated fine paper are to be filled primarily on Veitsiluoto in Finland, and Nymölla in Sweden. One fine paper machine at the Imatra mill is to be closed down in the first quarter of 2010.
      Also, the sales process of the Kotka mills is to be started again.
     
The company expects the Varkaus mills to be closed by the end of 2010, unless demand for fine paper improves, and prices go up. The plans would affect between 450 and 1,100 employees in Finland, depending on what happens in Varkaus, and without the possible impact of the sales process of the Kotka mills.
     
“In the past two years we have transformed the Group to improve our long-term financial returns, which are the basis for the future of any company. We have tried to move as fast as possible, but it has not been fast enough”, says Stora Enso CEO Jouko Karvinen.
      “The operating environment has deteriorated faster than ever before: long-term structural cost inflation in fibre and energy costs has recently been followed by dramatic weakening in demand. As we cannot change this operating environment, we will instead continue to change Stora Enso so we can operate in the new environment and ensure a brighter future for the Group”, Karvinen says.
     
The plans do not affect the testing of NSE Biofuels, a joint venture of Stora Enso and Neste Oil located in Varkaus. Stora Enso also plans to look for ways to recycle beverage cartons in Finland, and to produce district heat for the City of Varkaus in case the mills there need to be closed.
      Stora Enso promises to offer outplacement services, as well as finding alternate employment inside the company for those losing their jobs.


Previously in HS International Edition:
  Stora Enso plans massive new pulp mill investment - in Uruguay (19.5.2009)
  Finnish labour unions outraged at moving Stora Enso orders to Sweden (23.3.3009)
  Stora Enso closing Summa and Kemijärvi mills at brisk pace (18.1.2008)

Links:
  Press release: 19 August 2009 Stora Enso continues the change