HELSINKI--(BUSINESS WIRE)--Regulatory News:
Stora Enso (HEX:STEAV) (HEX:STERV) (STO:STEA) (STO:STER) plans to consolidate manufacturing of corrugated packaging in Finland to its Lahti plant. The objective is to improve profitability and competitiveness by creating a centre of excellence for corrugated packaging in Lahti.
As part of the possible consolidation, Stora Enso would invest approximately EUR 19 million in new machinery and supporting infrastructure in Lahti, where the most important individual investment item is a new corrugator. The proposed project is planned to start in November 2016 and is expected to be finalised by the end of the first quarter 2018.
According to the plan, the Heinola Corrugated plant would be closed permanently and packaging manufacturing transferred to the Lahti plant. Co-determination negotiations will start within Lahti and Heinola corrugated plants.
“The plan to potentially consolidate our corrugated operations in Finland is largely driven by the need to improve profitability and strengthen our competitive edge. In addition to the planned investment, our strong infrastructure in Lahti would provide us with a world-class asset base to better serve our customers,” says Peter Torstensson, SVP and Head of Corrugated Nordics, Division Packaging Solutions.
The possible personnel reduction within the corrugated plants in Lahti and Heinola combined is about 60 persons. Decisions regarding the planned consolidation, closure and employee reduction will be taken after the co-determination negotiations have been concluded. The corrugated packaging production at the Kristiinankaupunki plant will be continued. The Heinola Fluting mill for containerboard will not be affected.
The plan will have a negative impact of approximately EUR 9 million which will be recorded as an item affecting comparability (IAC) in Stora Enso’s third quarter 2016 results.
Stora Enso is a leading provider of renewable solutions in packaging, biomaterials, wooden constructions and paper on global markets. Our aim is to replace fossil based materials by innovating and developing new products and services based on wood and other renewable materials. We employ some 26 000 people in more than 35 countries, and our sales in 2015 were EUR 10.0 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) on the International OTCQX over-the-counter market. storaenso.com
STORA ENSO OYJ
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