Stora Enso to cut magazine paper capacity in Finland
Stora Enso is planning to take 190,000 tpy of coated magazine paper capacity from the market. The company announced its intention to close down a machine at the Veitsiluoto mill.
Stora Enso has announced plans to permanently shut down the PM 1 at its Veitsiluoto mill in Finland. The company said it was starting co-determination negotiations with employees and expected to close the machine by the end of the first quarter 2014. However, no final decision would be taken until the talks had been concluded, it added. The planned closure would affect up to 90 employees.
PM 1 has an annual production capacity of 190,000 t of coated mechanical paper. According to Stora Enso, the shutdown would decrease the company's capacity in the sector by about 15% which represents approximately 2% of total European coated mechanical paper capacity.
The Veitsiluoto mill produces office papers, coated mechanical paper as well as sawn products. The site has a total of around 750 employees.
When explaining the move, Stora Enso pointed to the structural weakening of magazine paper demand in Europe. For the same reasons, the company is currently also negotiating with employee representatives of its Corbehem LWC paper mill in France. French trade unions say the mill with an annual capacity of 330,000 t will be permanently shut down at the end of June. Stora Enso stresses that no final decision on the future of the mill has been made yet. The paper producer had announced in October 2012 that it intended to sell the Corbehem site.
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