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ListaLarge Cap Stockholm
IndustriSkog & Cellulosa
Stora Enso är en global skogsindustrikoncern. Inom koncernen återfinns produktion och utveckling av tidnings- och bokpapper, konsumentkartonger, industriförpackningar samt övriga träprodukter. Koncernen har verksamhet på global nivå med störst närvaro inom Europa samt Nordamerika. Bolaget grundades 1998 vid sammanslagningen av Finska Enso och svenska Stora Kopparbergs Bergslags Aktiebolag.


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2020-09-16 09:00:00

STORA ENSO OYJ INVESTOR NEWS 16 September 2020 at 10.00 EEST

Stora Enso will start codetermination negotiations with employees at its Hylte Mill in Sweden regarding a plan to reorganise the mill, including permanent closure of paper machine PM3 and the deinking plant (DIP). After the planned restructuring, the mill would run on 100% thermomechanical pulp (TMP), improving the competitiveness of the mill. The planned closure of PM3 and the reorganisation of the mill would impact a maximum of 140 persons. PM3 is planned to be closed by the end of 2020 and the DIP latest in Q2 2021.

The plan would result in annual cost savings of EUR 14 million. Stora Enso will book restructuring costs of approximately EUR 12 million as an item affecting comparability (IAC) in its Q3 2020 results, of which about EUR 8 million will have a cash impact. The planned closure would not have material impact on Stora Enso's sales or operational EBIT.
"The decline in global newsprint demand continues due to changes in consumer behaviour, and it is not expected to recover. This has led to global overcapacity, low operating rates, and poor profitability at the Hylte Mill. The planned measures would improve the competitiveness of the mill. Also, Stora Enso has invested in the future of the site to produce formed fiber products and biocomposites," says Kati ter Horst, EVP, Paper division.
No decisions regarding the planned reorganisation or employee impact will be taken until the codetermination negotiations have been concluded. Hylte Mill currently operates two newsprint machines with an annual capacity of 480 000 tonnes. Production at Hylte Mill would continue on one line, PM4 for standard newsprint paper. The planned shutdown would decrease Stora Enso's annual newsprint capacity by 26% or 235 000 tonnes, which represents 4% of total European newsprint paper capacity. The planned shutdown would reduce Stora Enso's total paper capacity by 5%.
Stora Enso will continue to produce standard newsprint at Hylte, Langerbrugge and Sachsen mills. The closure of Hylte Mill PM3 would not impact Stora Enso's newsprint product offering, and we would be able to serve our customers as today.
For further information, please contact:
Ulrika Lilja
EVP, Communications
tel. +46 72 221 9228
Liisa Nyyssönen
SVP Communications
Paper division
tel. +358 40 544 3491

Investor enquiries:
Ulla Paajanen
SVP, Investor Relations
tel. +358 40 763 8767
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 25 000 employees in over 30 countries. Our sales in 2019 were EUR 10.1 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 (http://www.storaenso.com)