STORA ENSO OYJ INVESTOR NEWS RELEASE 4 September 2023 at 11:00 EEST
HELSINKI, Sept. 4,
2023 /PRNewswire/ -- Stora Enso has progressed
with its restructuring actions, announced on 15 June 2023, aimed at strengthening the Group's
long-term competitiveness and creating a decentralised and more
customer centric operating model. These actions would reduce the
number of employees by approximately 1,150. The parts of the change
negotiations completed so far, will result in a reduction of 710
employees.
Closure of pulp unit in Finland, Biomaterials
division
Stora Enso has concluded the change negotiations at its Sunila site
and decided to permanently close pulp production and lignin
extraction. The Sunila site has an annual capacity of 375,000
tonnes of long-fiber and 50,000 tonnes of lignin. Production at the
site has been at a standstill since May and will not be ramped up.
The closure will impact 240 employees. The pilot plant for
bio-based battery material will, as previously communicated,
continue its operations at the Sunila site.
Restructurings in the Packaging Materials division
Stora Enso has, during the third quarter permanently, closed down
one of the four containerboard production lines at its Ostrołęka
site in Poland. The production
line had an annual capacity of 120,000 tonnes of recycled
containerboard. The closure impacts 50 employees locally.
In June 2023, Stora Enso completed change negotiations in
the Packaging Materials division with a reduction of approximately
250 positions in its management and support functions.
The consultation with employee representation relating to the
planned closure of the De Hoop containerboard site in
the Netherlands is ongoing and is
expected to be concluded during the fourth quarter of 2023. The
site has an annual capacity of 380,000 tonnes, employing 185
people.
Closure of sawmill in Estonia, Wood Products division
Stora Enso has decided to permanently close its Näpi sawmill. The
sawmill has an annual capacity of 50,000
m3 of sawn timber, 180,000 m3 of further processed
wood products and 25,000 tonnes of pellets. The closure will take
place during the fourth quarter of 2023 and directly impact
approximately 90 employees in Estonia.
Group office employee reductions
Stora Enso has concluded change negotiations regarding a reduction
of office employees within its Group functions in Finland. As a result of the negotiations,
approximately 80 employees within the Group functions in
Finland will be laid off. The
negotiations in other countries are still ongoing and are expected
to be concluded by the end of 2023.
The completed and ongoing restructuring actions would
decrease Stora Enso's annual sales by approximately
EUR 380 million, based on the 2022
numbers. Operational EBIT is expected to improve by approximately
EUR 110 million annually. Stora Enso
has recorded in the Q2/2023 results as an item affecting
comparability (IAC) approximately EUR 140
million non-cash asset impairments related to the planned
closures and approximately EUR 80
million costs relating to the potential lay-offs and
restructuring expenses, with cash outflows impacting future
quarters.
Previous release about the restructuring actions:
15 June 2023: Stora Enso plans
restructuring actions to improve long-term competitiveness and
profitability
For further information, please contact:
Carl Norell
SVP Corporate Communications
tel. +46 72 241 0349
Investor enquiries:
Anna-Lena Åström
SVP Investor Relations
Tel. +46 70 210 7691
Part of the global bioeconomy, Stora Enso is a leading provider
of renewable products in packaging, biomaterials, and wooden
construction, and one of the largest private forest owners in the
world. We believe that everything that is made from fossil-based
materials today can be made from a tree tomorrow. Stora Enso has
approximately 21,000 employees and our sales in 2022 were
EUR 11.7 billion. Stora Enso shares
are listed on Nasdaq Helsinki Oy (STEAV, STERV) and Nasdaq
Stockholm AB (STE A, STE R). In addition, the shares are traded in
the USA as ADRs and ordinary
shares (SEOAY, SEOFF, SEOJF). storaenso.com/investors
STORA ENSO OYJ
For further information, please contact:
Carl Norell
SVP Corporate Communications
tel. +46 72 241 0349
Investor enquiries:
Anna-Lena Åström
SVP Investor Relations
Tel. +46 70 210 7691
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