Stora Enso to Restructure Magazine Paper Operations
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Stora Enso, Helsinki, Finland, reports that its Printing and Reading Business Area plans to increase its cost competitiveness by restructuring coated magazine paper operations at the Corbehem Mill in France, Veitsiluoto Mill in Finland, and Kabel Mill in Germany. The plans will reduce annual costs by some EUR 48 million, with the full impact achieved from the third quarter of 2013 onwards. The restructuring also includes investments in the Corbehem, Veitsiluoto, and Kabel mills totaling EUR 18 million.
The proposed restructuring measures would reduce the number of employees in coated magazine paper operations by up to 110. All of the actions would be completed by the end of 2012. Stora Enso will record a cash provision of approximately EUR 5 million and a fixed asset write-down of approximately EUR 1 million in the Printing and Reading segment as a non-recurring item in the first quarter results.
"The operating environment in coated magazine paper has remained challenging. The plans announced today would respond to these challenges by improving cost efficiency and productivity. The planned streamlining of coated magazine paper operations, including investments in quality, productivity, and energy saving, would enable us to better meet customer and market expectations, and improve profitability," said Juha Vanhainen, EVP, Stora Enso Printing and Reading Business Area.
The outcome of the plans, the company notes, will depend on the result of the local co-determination procedures. Stora Enso would work in cooperation with the local communities to help affected personnel to find new employment opportunities, and all job openings in other Stora Enso units would be available to those affected.
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