STORA ENSO OYJ INVESTOR NEWS 27 June
2019 at 14.10 EEST
HELSINKI, June 27, 2019 /PRNewswire/ -- Stora Enso plans
to consolidate the Finnish spruce (whitewood) production to Varkaus
sawmill. The plan includes a permanent closure of Kitee sawmill and
production increase to Varkaus. The objective is to improve
profitability and competitiveness by creating a fully integrated
sawmill for spruce production in Varkaus, optimising the synergies
from the existing LVL (Laminated Veneer Lumber), pulp and board
mills.
The consolidation plan is part of Stora Enso's profit protection
programme of EUR 120 million
targeting reductions in variable and fixed costs. The possible
consolidation is subject to completion of the co-determination
negotiations at Kitee sawmill which will start in August. The
production at Kitee sawmill is planned to be stopped gradually
until the end of 2019.
"The planned consolidation would enable us to optimise the full
potential of Varkaus mill as an integrated mill, delivering a
variety of value added wood products such as further processed sawn
wood and LVL. This would provide us possibilities for improved
product mix, stronger R&D and innovation as well as
opportunities for efficient and automatised production. In Varkaus
we also see strong synergies with Stora Enso's pulp and board mills
when it comes to shared raw material, logistics, infrastructure and
energy usage. This consolidation would further enhance Stora Enso's
position as a global provider of high quality wood products and
innovative wood-based solutions", says Jari Suominen, Head of Stora Enso's Wood
Products division.
At Kitee sawmill the planned closure would result in a reduction
of maximum 85 FTEs (full-time equivalents). Varkaus sawmill and LVL
mill currently employ a total of 105 people. An increased
production in Varkaus would require an additional 20 FTEs.
Decisions regarding the planned consolidation, closure and employee
reduction will be taken after the co-determination negotiations
have been concluded.
Stora Enso will record restructuring related costs and
write-downs of EUR 11 million as an
item affecting comparability (IAC) in the second quarter 2019
results. Approximately EUR 5 million
of the provisions will have a cash impact.
The planned closure would not have a significant impact on Group
sales or operational EBIT this year.
Part of the bioeconomy, Stora Enso is a leading global provider
of renewable solutions in packaging, biomaterials, wooden
constructions and paper. We believe that everything that is made
from fossil-based materials today can be made from a tree tomorrow.
Stora Enso has some 26 000 employees in over 30 countries. Our
sales in 2018 were EUR 10.5 billion.
Stora Enso shares are listed on Nasdaq Helsinki (STEAV, STERV) and
Nasdaq Stockholm (STE A, STE R). In addition, the shares are traded
in the USA as ADRs (SEOAY).
storaenso.com
CONTACT:
For further information, please
contact:
Cathrine
Wallenius
SVP Communications, Wood Products division
Tel. +46-(0)70-209-2429
Investor enquiries:
Ulla
Paajanen
SVP, Investor Relations
tel. +358-40-763-8767
This information was brought to you by Cision
http://news.cision.com
https://news.cision.com/stora-enso-oyj/r/stora-enso-plans-consolidation-of-spruce-production-to-one-sawmill-in-finland,c2851953