Stora Enso Plans to Shut Down Coated Paper Machine at Veitsiluoto Mill
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Stora Enso will record a restructuring provision and a working capital write-down as a non-recurring item related to the planned closure with a negative impact of approximately EUR 8 million on operating profit in its first quarter 2014 results.
The planned shutdown would reduce annual sales of the company’s Printing and Reading segment by EUR 12 million, representing an annual fixed cost decrease of EUR 11 million, working capital write-downs of EUR 2 million, and provisions with cash impact of EUR 6 million.
The planned shutdown would decrease Stora Enso’s coated mechanical paper capacity by about 15%, which represents about 2% of total European coated mechanical paper capacity. If PM 1 was permanently shut down, Stora Enso would be able to serve its NovaPress customers from Veitsiluoto Mill PM 5 and from Kabel Mill in Germany, the company notes.
No decisions regarding the planned closure and employee reduction will be taken until the co-determination negotiations have been concluded. Stora Enso says it would make every effort in co-operation with the local community to help affected personnel find new employment opportunities, and all job openings in other Stora Enso units would be available to those affected.
Veitsiluoto Mill in Kemi, Finland, is an integrated facility producing office papers, coated mechanical papers, and sawn products. It is the world's northernmost paper producing facility, and number four among the biggest paper and paperboard mills in Europe. The mill has 750 employees.
