Stora Enso to Restructure Its Core, Coreboard Operations

Decreased demand for paper mill cores in mature markets has made the market situation tighter..." — Mats Nordlander, EVP, Stora Enso Packaging Business Area.

Nov. 4, 2011 - Stora Enso said that its Packaging Business Area will restructure its core and coreboard operations in Finland, Germany, the United Kingdom and the U.S., and streamline corrugated packaging production in Finland.

According to Stora Enso, the planned restructuring measures would reduce approximately 80 employees in corrugated packaging operations in Finland and about 70 employees in core and coreboard operations mainly in Germany, Finland, the United Kingdom and the U.S.

In addition, the plans include possible temporary lay-offs at corrugated packaging operations in Finland, the company said.

"In core and coreboard markets the main customer is the board and paper industry. Decreased demand for paper mill cores in mature markets has made the market situation tighter, and in the current financial situation the outlook is uncertain," said Mats Nordlander, EVP, Stora Enso Packaging Business Area.

"Corrugated packaging markets are very local and closely related to national economies. In Finland, demand is still clearly below pre-crisis levels, and there are no signs of sustained recovery," Nordlander said.

Stora Enso expects its packaging segment to reduce annual costs by approximately EUR 6 million, starting during the first quarter of 2012, with all planned actions to be completed by the end of the third quarter of 2012.

"The planned restructuring and streamlining measures, including some development investments, will enable us to better meet customer and market expectations and ensure our competitiveness by being more cost efficient and streamlining our operations," Nordlander concluded.

Stora Enso said that all decisions will be made after the local co-determination negotiations have been concluded. and the company would make every effort in co-operation with local communities to help the affected personnel find new employment opportunities, and all job openings in other Stora Enso units would be available to those affected.

SOURCE: Stora Enso