PR Newswire
HELSINKI, March 18, 2019
HELSINKI, March 18, 2019 /PRNewswire/ -- Stora Enso starts
co-determination negotiations with employees at Oulu Mill in Finland regarding a plan to convert
the paper mill into packaging board production and the closure of paper machine 6 and a sheeting plant. The planned change could
result in a reduction of a maximum of 400 employees at the mill. The decision on the potential conversion will be made by the
Stora Enso Board of Directors during the first half of 2019 after the co-determination process has been completed.
Stora Enso announced in June 2018 that it would evaluate development opportunities for
the Oulu Mill, because current coated wood-free paper production is facing challenges with market demand and profitability. The
feasibility study focused on converting the mill into packaging board grades. Based on the technical and financial aspects of the
feasibility study results, the proposed plan is to convert paper machine 7 into kraftliner production and close down paper
machine 6 and the sheeting plant by the end of 2020 at the latest. The capital expenditure for the potential investment is
estimated to be approximately EUR 350 million during the years 2019–2021 instead of the
EUR 700 million estimated in the initial feasibility study scope.
The potential investment would include a new world-class kraftliner line with a capacity of 450 000 tonnes per year and the
modification of the pulp mill and drying machine to produce unbleached brown pulp. Moreover, it would include investments to
enhance environmental performance.
The potential conversion of Oulu Mill would enable Stora Enso to further improve its position in the growing packaging business
and take a major step in its transformation. The aim of the change is to improve the competitiveness of Oulu Mill and to ensure a
long-term future for the mill.
The environmental permit will be filed in March. The permit application will also include a description of a potential conversion
for paper machine 6, in case this option would be considered at a later date.
The entire personnel of Stora Enso Oulu Oy, approximately 600 people, falls within the scope of the negotiations, which will
start on 25 March 2019. In line with Finland's co-determination
law, the negotiations are based on the proposed conversion plan and include the reorganization of structures, functions,
resources and job roles. The negotiations are expected to take at least six weeks. The potential changes affecting personnel
would take place by the end of year 2020.
No decisions regarding the planned conversion or redundancies will be taken until the co-determination negotiations have been
concluded.
Part of the bioeconomy, Stora Enso is a leading global provider of renewable solutions in packaging, biomaterials, wooden
constructions and paper. We believe that everything that is made from fossil-based materials today can be made from a tree
tomorrow. Stora Enso has some 26 000 employees in over 30 countries. Our sales in 2018 were EUR 10.5
billion. Stora Enso shares are listed on Nasdaq Helsinki (STEAV, STERV) and Nasdaq Stockholm (STE A, STE R). In addition,
the shares are traded in the USA as ADRs (SEOAY). storaenso.com
STORA ENSO OYJ
For further information, please contact:
Ulrika Lilja
EVP, Communications
tel. +46-72-221-9228
Investor enquiries:
Ulla Paajanen
SVP, Investor Relations
tel. +358-40-763-8767
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