Stora Enso to start temporary lay-off talks at more mills in Finland

Corporate flag at Stora Enso's Kanavaranta headquarter.
Stora Enso flags potential demand and operational
headwinds amid coronavirus pandemic
15 Apr 2020 − 

The co-determination process on temporary lay-offs in Finland is to be extended to the group's Packaging Materials division.

Stora Enso will initiate a co-determination process on temporary lay-offs for several mills within the group's Packaging Materials division in Finland. Negotiations would start on 21 April, affecting a total of 2,000 employees at the Imatra, Ingerois, Varkaus and Heinola mills, including Efora staff, the company said.

Stora Enso explained its decision with the uncertainty caused by the coronavirus pandemic and the possible impacts on the group's business. Uncertainties were related to constraints in resourcing of mill personnel, logistics and weakening demand, said the company.

On 8 April, Stora Enso Finland had already started a co-determination process on temporary lay-offs at the Oulu and Veitsiluoto mills, and the wood supply organisation Stora Enso Metsä. On 14 April, co-determination process was also initiated for employees at the group's Sunila and Enocell pulp mills.

The temporary lay-off mechanism covers a period of a maximum of 90 days and the measures would implemented during 2020. Stora Enso emphasises that these were precautionary measures, meaning that temporary lay-offs may only be taken partly or not at all.

The Covid-19 disease caused by the novel coronavirus (SARS-CoV-2), and the lockdown restrictions taken by businesses and governments in order to limit the Covid-19 spread, are reducing economic activity in Europe, and are expected to have a strong impact on many industrial segments. EUWID Pulp and Paper is keeping you up-to-date with latest news and developments in the recycling, pulp, paper, packaging and printing industries across Europe.

To gain full access to EUWID Pulp and Paper news content, and market and price reports on major pulp, paper and board markets in Europe consider subscribing to EUWID Pulp and Paper or start a three-week free trial.

previous − Germany: downturn in fine paper business amid Coronavirus crisis

UPM responds to declining demand for printing and writing paper  − next