Stora Enso examines sale of Corbehem mill, to shut down newsprint PM at Hylte mill
Against the background of overcapacity and pressure on profits in some of its markets, Stora Enso is launching an extensive restructuring programme to streamline operations and to cut costs.
Stora Enso announced that it is starting an extensive restructuring programme including the possibility of selling its Corbehem LWC mill in France and plans to shut down PM 1 for newsprint at its Hylte mill in Sweden. The profitability improvement programme is to reduce Stora Enso's annual costs by €36m and decrease the number of employees by approximately 520 altogether.
In addition Stora Enso plans to permanently shut down the corrugated packaging plant at Ruovesi in Finland in the second quarter of 2013 due to decreased demand for offset-printed corrugated packaging in Finland and poor financial performance of the plant. Operations at the Heinola, Ingerois and Pori mills and corrugated packaging operations at all of its Swedish mills are also to be streamlined to ensure long-term competitiveness. The number of employees at the division's Swedish and Finnish units is to be reduced by up to 100.
More cost cutting measures are to be taken at the Skutskär pulp mill in Sweden and in the Building and Living division. About 60 and 25 jobs are to be cut there respectively.
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