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 Euro 8 million on operating profit in its 1Q 2014 results.
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 PM1 was permanently shut down, Stora Enso would be able to serve its NovaPress customers from Veitsiluoto mill PM5 and from Kabel mill in Germany.
No decisions regarding the planned closure and employee reduction will be taken until the co-determination negotiations have been concluded. Stora Enso would make every effort in co-operation with the local community to help the affected personnel find new employment opportunities, and all job openings in other Stora Enso units would be available to those affected.
Stora Enso is the global rethinker of the paper, biomaterials, wood products and packaging industry.
