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Stora Enso to Shut Mill, Coated PM in Germany

Nov. 5, 2008 - The Supervisory Board of Stora Enso's German holding company's has decided to close down Baienfurt Mill and Kabel Mill's coated magazine paper machine (PM) 3, which has an annual capacity of 140,000 tons, by the end of the 2008.

The company cited persistent profitability problems caused by European overcapacity, the strength of the euro and cost increases, especially for wood and energy as the over-riding factors behind its decision.

In September, Stora Enso announced its plans to shut down the cartonboard machine at Baienfurt in Germany with an annual capacity of 190,000 tons of folding boxboard by the end of 2008.

Stora said it will serve the mill's customers from the Group's other board mills in Finland and Sweden.

However, the sheeting service center at Baienfurt will remain in operation. The mill has 391 employees, of whom about 40 will continue to work for the sheeting service centre.

The shutdown of Kabel's PM 3 will affect about 170 employees.

Stora Enso said that it will seek parties to develop the Baienfurt mill site for industrial use other than board or paper production. The company is also working on a social plan for employees affected by the restructuring measures.

SOURCE: Stora Enso




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