Stora Enso to Retire Newsprint Machine at Maxau Mill in Germany

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Stora Enso, Helsinki, Finland, reported this week that it will permanently shutdown a 195,000 metric tpy newsprint machine at its Maxau Mill in Germany by the end of November. Newsprint production at Maxau will end due to weak European market outlook and high production costs, the company says, adding that sales prices have fallen significantly while recovered paper and wood costs have risen strongly. "As a result, there is no realistic prospect of newsprint production at Maxau Mill becoming profitable again in the foreseeable future," the company stated in a release.

Juha Vanhainen, EVP, Publication Paper Business Area, noted that "the European newsprint market is structurally heavily oversupplied and there has been no substantial recovery in demand since consumption collapsed in early 2009. The outlook for demand is negative too. In addition, the availability of wood and recycled fiber in Germany has been limited, so costs have been rising fast recently."

The permanent shutdown of the newsprint machine at Maxau Mill will reduce European newsprint capacity by approximately 1.5%. It will affect about 180 of the 617 people employed at the Maxau Mill. Stora Enso is working on a social plan for the employees affected by the restructuring measures. The two uncoated magazine paper machines with total annual capacity of 530,000 metric tpy will remain in operation.