Stora Enso Completes Employee Talks Related to Closure of Kvarnsveden Paper Mill in Sweden

Kvarnsveden Mill in Borlänge, Sweden, has two paper machines with a combined annual capacity of 565 000 tonnes of supercalendered (SC) magazine papers and improved newsprint, and a pulp mill with an annual capacity of 900 000 tonnes of thermomechanical pulp.

July 1, 2021 - Stora Enso has completed the co-determination negotiations concerning the closing down the pulp and paper production at its Kvarnsveden site in Sweden. The closure will take place by the end of the third quarter of 2021.

In April 2021, Stora Enso announced a plan to permanently close down pulp and paper production at its Kvarnsveden site due to the declining paper market. As a result of the co-determination negotiations regarding the Kvarnsveden site, pulp and paper production will be closed permanently by the end of the third quarter of 2021.The customer service centre located at Kvarnsveden will be closed down by the end of 2021. Power plant will continue to operate, however only for the purpose of district heating and for maintaining buildings onsite.

When the co-determination plan was announced in April, the maximum personnel impact was estimated to be 440 people. Following the closure decision, co-determination negotiations regarding personnel impact and the related redundancies will begin shortly. No lay-offs will be executed before these negotiations have been concluded.

Stora Enso has initiated a project to find future options for the Kvarnsveden site. The process is coordinated with the City of Borlänge and other regional and national stakeholders. Kvarnsveden site offers many advantages for future use, including strong industrial infrastructure, a railway connection to Gothenburg harbor, a connection to the national electricity grid, and availability of clean water.

Stora Enso continues to produce supercalendered (SC) papers at Langerbrugge site in Belgium and Maxau site in Germany, and improved newsprint at Anjala site in Finland and Sachsen site in Germany.

Kvarnsveden Mill

Kvarnsveden Mill in Borlänge, Sweden has two paper machines with a combined annual capacity of 565 000 tonnes of supercalendered (SC) magazine papers and improved newsprint, used in magazines, newspapers, catalogues, supplements and retail advertising. The mill has also an integrated softwood thermomechanical pulp (TMP) mill with an annual capacity of 900 000 tonnes.

Part of the bioeconomy, Stora Enso is a leading global provider of renewable solutions in packaging, biomaterials, wooden constructions and paper. To learn more, visit: www.storaenso.com.

SOURCE: Stora Enso

Read a related story on PaperAge.com: Stora Enso to Permanently Close Kvarnsveden and Veitsiluoto Mills, Reducing Paper Capacity by over 1.3 Million Tonnes - April 20, 2021.