Stora Enso Fine Paper to Cut Jobs, Trim Costs

Source from:  Tobacco Journal 05/04/2011

Stora Enso Group's fine-paper unit plans to cut as many as 285 European jobs under a restructuring plan to begin this year with the goal of reducing annual costs by about EUR 20 million, the company announced. Operations at the mill in Uetersen, Germany, will be modified to place more emphasis on specialty papers. The Nymölla mill in Sweden and Oulu mill in Finland also face revamping, as do sheeting plants in Belgium and the United Kingdom. Beyond streamlining operations, restructuring wants to utilise converting capacity more efficiently, the company said in a statement released 3 May. "Fine paper demand is still clearly below pre-crisis levels, and there are no signs of sustained recovery," said Hannu Alalauri, vice-president at Stora Enso's fine paper business. "We are comparing the best practises at all our mills so we can continuously adopt the most efficient ways of working," he said. Redundancies will be spread among employees in Finland, Sweden, Germany, Belgium and the United Kingdom, Stora Enso said. A one-time cash provision of about EUR 16 million will be recorded in second-quarter financial results, the company said. Restructuring is to be completed by the second business quarter of next year, Stora Enso said. Enditem