Stora Enso is implementing a profit protection programme of Euro 120 million targeting reductions in variable and fixed costs, as market uncertainty increases. Stora Enso estimates that some effects will be visible already during 2019 with full impact by the end of 2020, as the company says in the press release received by Lesprom Network.
As part of the programme, Stora Enso is planning to close paper machine 6 at Imatra Mills in Finland and to start co-determination negotiations at the mill related to this plan. With annual production capacity of 90,000 tonnes, PM6 is a small machine that has reached its end-of-life.
The planned closure would result in a reduction of maximum 80 FTEs (full-time equivalents) and reorganisation of some tasks. The plan is to continue production until the maintenance break during 3Q or until the end of 2019, with an ability to deliver the committed volumes. The planned closure would cost approximately Euro 4 million related to asset write-off and costs of the co-determination process. The amount would be recorded as an item affecting comparability (IAC).
Stora Enso is also planning to take performance improvement measures at the Ala sawmill in Sweden and the Imavere sawmill in Estonia. The plan includes actions to increase productivity and reduce costs. The planned actions would result in a reduction of maximum 35 FTEs and required co-determination negotiations related to this plan have been initiated.
Stora Enso is a leading global provider of renewable solutions in packaging, biomaterials, wooden constructions and paper.
