Stora Enso plans to consolidate the Finnish spruce (whitewood) production to Varkaus sawmill in Finland. The plan includes a permanent closure of Kitee sawmill and production increase to Varkaus, as the company says in the press release received by Lesprom Network.
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 Euro 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.
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.
The planned closure would not have a significant impact on Group sales or operational EBIT this year.
Stora Enso is a leading global provider of renewable solutions in packaging, biomaterials, wooden constructions and paper.
