Stora Enso to Permanently Shut Down Coated Paper Machine at Veitsiluoto Mill in Finland

Stora Enso plans to permanently shut down PM1 (190,000 tpy coated paper) at its Veitsiluoto Mill in Kemi, Finland.

Jan. 24, 2014 - Stora Enso said that it has plans to permanently shut down paper machine 1 (PM1) at its Veitsiluoto Mill in Kemi, Finland "due to structural weakening of magazine paper demand in Europe."

PM 1 has an annual capacity of 190,000 tonnes of coated magazine paper.

Stora Enso said the shutdown will occur by the end of the first quarter of 2014.

The planned closure would affect up to 90 employees and the company is starting co-determination negotiations with employees at theVeitsiluoto Mill.

The planned shutdown would decrease Stora Enso’s coated mechanical paper capacity by about 15%, which represents about 2% of total European coated mechanical paper capacity.

If PM1 was permanently shut down, Stora Enso would be able to serve its NovaPress customers from Veitsiluoto Mill PM5 and from Kabel Mill in Germany. the company said.

Stora Enso said no decisions regarding the planned closure and employee reduction will be taken until the co-determination negotiations have been concluded and it will make every effort in co-operation with the local community to help the affected personnel find new employment opportunities, and all job openings in other Stora Enso units would be available to those affected.

For additional information about Stora Enso, visit the company's website: www.storaenso.com

SOURCE: Stora Enso