Stora Enso finalises co-determination talks for Veitsiluoto mill

Stora Enso continues to adapt output capacity to demand
18 Jun 2021 − 

Three paper machines will be stopped in the third quarter of this year.

Stora Enso has completed co-determination negotiations concerning the closing down of pulp and paper production at its Veitsiluoto mill in Finland. The company says that the closure will take place during the third quarter of this year. As announced in April this year, the three paper machines at the mill, chemical pulp and groundwood production, and the sheeting plant will be closed permanently. The sawmill will continue operating at the site within the Wood Products division and employ some 50 persons.

The Veitsiluoto Mill in Kemi, Finland has a total annual paper output capacity of 790,000 tonnes on three paper machines. Two machines produce woodfree uncoated paper, mainly office paper grades, and one machine produces coated paper grades, mainly for magazines but also for packaging applications. In addition, the mill has an integrated chemical pulp mill with a capacity of 360,000 tpy, a groundwood mill and a sheeting plant. Stora Enso says it will continue to produce woodfree uncoated office paper at is Nymölla site in Sweden.

As a result of the negotiations, 550 people will be permanently laid off. Some 28 per cent of the redundancies can be managed through pension arrangements, Stora Enso says. Of these 500 employees, 440 work in the Paper division and 110 at the maintenance company Efora. The initial estimate of the maximum number of employees affected was 670 people. A maximum of 21 people in Efora’s engineering business unit in Veitsiluoto will be transferred to the engineering company Etteplan in a transfer of undertakings on 1 August 2021. The redundancies will mostly take place by the end of January 2022.

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