Stora Enso to Reorganise Structure of Its Renewable Packaging Division

The reorganisation of the renewable packaging businesses is planned to be implemented by 1 July 2014.

March 21, 2014 - Stora Enso said that it plans to reorganise its Renewable Packaging Division, comprising Consumer Board, Packaging Solutions and Packaging Asia, into three separate businesses reporting to the CEO.

As agreed by the Board of Directors, the reorganisation has two objectives: to enhance visibility internally and externally in addressing Global Responsibility challenges in high risk markets, and to increase the focus on the growth engines of Stora Enso's strategy.

"This change will remove one organisational layer. We want to increase clarity and transparency within and outside the Group concerning the Global Responsibility challenges we have had and continue to have in China, India and Pakistan," said Stora Enso CEO Jouko Karvinen.

The reorganisation of the renewable packaging businesses is planned to be implemented by 1 July 2014, subject to the outcome of applicable co-determination negotiations. Until then, the businesses of the current Renewable Packaging Division (Consumer Board, Packaging Solutions and Packaging Asia) will report directly to the CEO.

Mats Nordlander, currently head of the Renewable Packaging Division and a member of the Group Leadership Team, will leave his present roles. He will continue to report to the CEO while his new tasks are defined and agreed.

"Stora Enso has already initiated a human rights assessment across the Group. This is a continuation of our ongoing efforts to systematically integrate human rights issues into our business. We have high objectives and this will be a long journey. We may never be perfect, but we will always be transparent," Karvinen said.

"Consumer Board, Packaging Solutions and Biomaterials have been defined as the growth engines of the Group. Although continued cost and capacity adjustments have maintained the cash generation of the Group, the growth of the higher margin businesses has been limited. We must now get more energy and focus on this task to grow our top line faster and to manage the large investment projects and risks relating to them better," Karvinen added.

The effect of the changes on the segment structure and reporting will be announced in due course before the end of the second quarter of 2014.

SOURCE: Stora Enso