Stora Enso Makes Group Organizational Changes
Sept. 5, 2007 (Press Release) - Stora Enso today announced that it is reorganising its operations from the current four divisions into eight separate business areas: Fine Paper, Merchants, Consumer Board, Industrial Packaging, Magazine Paper, Newsprint, North America and Wood Products. An impairment charge totalling about EUR 1 300 million will be accounted for as a non-recurring item without cash impact in the third quarter of 2007.
"The main objectives of the reorganisation are to give business area leaders and their teams clear responsibility for improving financial performance, remove layers of management and to speed up decision-making. These changes will also improve our external transparency through enhanced reporting. The new structure will further focus the portfolio analysis work and facilitate scalability for the future, strengthening Stora Enso's position with regard to potential industry consolidation," says Stora Enso CEO Jouko Karvinen.
"Through these organisational changes, we also seek to improve the performance of our North American operations by reorganising them into a separate entity with full profit and loss responsibility reporting directly to me. Key criteria for defining the new business structure were identifying entities with strong synergies within the business and to a large extent their own customer base, while keeping customer interfaces simple and sharing relevant Group-level synergies."
The new organisational structure is effective immediately. Financial reporting in the third quarter results to be published on October 25, 2007 will be based on the new eight business areas. Historical figures based on the new business areas will be reported separately by October 15, 2007.
SOURCE: Stora Enso