Stora Enso Restructuring of Packaging Operations to Affect 150 Employees
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Stora Enso, Finland, reports that its Packaging Business Area plans to increase cost competitiveness and respond to market demand by restructuring its core and coreboard operations in Finland, Germany, the U.K., and the U.S. and streamlining corrugated packaging production in Finland. The planned restructuring measures would reduce approximately 80 employees in corrugated packaging operations in Finland and approximately 70 employees in core and coreboard operations mainly in Germany, Finland, the U.K., and the U.S. In addition, the plans include possible temporary lay-offs at corrugated packaging operations in Finland.
Stora Enso's Packaging Business Area plans to reduce annual costs by approximately EUR 6 million, starting during the first quarter of 2012, with all planned actions to be completed by the end of the third quarter of 2012. Stora Enso will record a restructuring provision and an inventory write-down of approximately EUR 4 million in the Industrial Packaging segment in the fourth quarter of 2011.
"In core and coreboard markets, the main customer is the board and paper industry. Decreased demand for paper mill cores in mature markets has made the market situation tighter, and in the current financial situation the outlook is uncertain. Corrugated packaging markets are very local and closely related to national economies. In Finland, demand is still clearly below pre-crisis levels, and there are no signs of sustained recovery. The planned restructuring and streamlining measures, including some development investments, will enable us to better meet customer and market expectations and ensure our competitiveness by being more cost efficient and streamlining our operations," says Mats Nordlander, EVP, Stora Enso Packaging Business Area.
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