Jun 22, 2015. /Lesprom Network/. Stora Enso plans to permanently shut down corrugated packaging converting unit in Chennai, India, due to unprofitability and a major decrease in local market demand, as the company said in the press release received by Lesprom Network.

The mill closure will involve negotiations with the local employees’ union. The mill employs 350 people, who will receive compensation and other support including training, medical care and assistance in finding new employment.

The packaging unit in Chennai has been part of Stora Enso since July 2011, following the Group’s acquisition of 51% of the shares in Inpac International in China. Today, Stora Enso Inpac offers fibre-based packaging solutions. Chennai Mill in India produces transport and consumer packaging made of corrugated board, for sale primarily in Chennai and Tamil Nadu region.

The total negative impact on Stora Enso’s operating profit in the 2Q 2015 will be approximately Euro 8 million, mainly related to a restructuring provision. Excluding this one-time impact, the closure will not have a material impact on Stora Enso’s sales and operational EBIT.

Stora Enso is a leading provider of renewable solutions in packaging, biomaterials, wood and paper on global markets.