Stora Enso plans to permanetly close Kvarnsveden and Veitsiluoto mills in the third quarter 2021, reducing paper capacity by 565,000 tpy of SC paper and improved newsprint, and 790,000 tpy of woodfree uncoated and coated magazine paper.
According to Stora Enso, the planned closure will directly affect 670 people in Finland and 440 people in Sweden. The company would start co-determination negotiations with employees at the mills and no decisions would be taken before those negotiations had been concluded, Stora Enso said.
Structural changes and Covid-19 reportedly created significant overcapacity in printing, writing and publishing paper markets in Europe. This resulted in historically low prices and negatively impacted mills' cost position and profitability.
"Both Kvarnsveden and Veitsiluoto mills are loss-making, and their profitability is expected to remain unsatisfactory also going forward," Stora Enso explained.
This free article is part of EUWID's coverage on Stora Enso and key publication paper markets in Europe.
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