Stora Enso to Make Decision on Uruguay Mill by Year-end

Oct. 1, 2010 - Stora Enso's chief executive said his company will make a decision before year-end whether or not to build a pulp mill in Uruguay

During a magazine interview, Jouko Karvinen said, ""We will decide on the possible investment hopefully this year. If the investment decision is made, it would take a couple of years before the machines are running."

He also said Stora Enso was in Brazil negotiating with its partner Fibria on extending a pulp mill there, while a plan to build a pulp and fine paper mill in the Russian region of Nizhny Novgorod was still on hold.

In regards to market conditions in Europe, Karvinen said persistent overcapacity must be eliminated to boost paper firms' profitability.

"It is insane that at the same time when paper making capacity is cut in Finland and Sweden, in the common market new capacity is being built in Portugal or Switzerland," he said.

"With this pace the industry will deteriorate because there is not enough money to invest or do product development."

SOURCE: Reuters