Stora Enso, Finland, plans to consolidate manufacturing of corrugated packaging in Finland to its Lahti plant. The objective is to improve profitability and competitiveness by creating a center of excellence for corrugated packaging in Lahti.

As part of the possible consolidation, Stora Enso would invest approximately EUR 19 million in new machinery and supporting infrastructure in Lahti, where the most important individual investment item is a new corrugator. The proposed project is planned to start in November 2016 and is expected to be finalized by the end of the first quarter of 2018.

According to the plan, the Heinola Corrugated plant would be closed permanently and packaging manufacturing transferred to the Lahti plant. Co-determination negotiations will start within Lahti and Heinola corrugated plants.

"The plan to potentially consolidate our corrugated operations in Finland is largely driven by the need to improve profitability and strengthen our competitive edge. In addition to the planned investment, our strong infrastructure in Lahti would provide us with a world-class asset base to better serve our customers," said Peter Torstensson, SVP and head of Stora Enso’s Corrugated Nordics, Division Packaging Solutions.

The possible personnel reduction within the corrugated plants in Lahti and Heinola combined is about 60 persons. Decisions regarding the planned consolidation, closure, and employee reduction will be taken after the co-determination negotiations have been concluded. The corrugated packaging production at the Kristiinankaupunki plant will be continued. The Heinola Fluting mill for containerboard will not be affected.

The plan will have a negative impact of approximately EUR 9 million, which will be recorded as an item affecting comparability (IAC) in Stora Enso’s third quarter 2016 results.