Temporary layoffs during the first half of 2019 could affect 500 people.
Stora Enso is considering curbing production at the Oulu woodfree coated paper mill in Finland in response to weak market conditions. The company announced it was planning to start co-determination negotiations on possible temporary layoffs of the entire Oulu paper mill staff.
According to Stora Enso, the co-determination process involved some 500 people that could be temporarily laid off for a maximum of 90 days during the first half of 2019. Negotiations did not include the personnel of the Oulu pulp mill.
The company blamed its plan on the receding market demand for coated fine paper and high raw material costs. "The purpose of the co-determination negotiations is to prepare for the possible continuation of the declining market situation. Temporary paper production constraints will help to improve the efficiency of the operations and to optimize paper production according to the market demand," the company said in a statement on 28 November.
Stora Enso Oulu paper mill is running two paper machines, producing more than 1 million tpy of woodfree coated paper. Last summer Stora Enso had announced a potential rebuild and conversion project for the Oulu fine paper mill that would turn the site into a board and kraftliner mill.
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