Consumables
Stora Enso approves efficiency improvements and mill investments
Wednesday 26. November 2008 - Co-determination negotiations at Imatra, Varkaus and Veitsiluoto mills have been concluded. The Group will provide support for the employees affected.
Stora Enso’s co-determination negotiations at its Imatra, Varkaus and Veitsiluoto mills in Finland have been concluded. As a result, Stora Enso will permanently shut down board machine (BM) 1 at Imatra, with annual capacity 170 000 tonnes, by the end of 2009 and Corenso’s coreboard machine at Varkaus, with annual capacity 100 000 tonnes, by the end of 2008 due to persistent profitability problems.
Polymer (PE) coating machine 2 at Imatra will be shut down in May 2009. The PE coating machine at Karhula will be shut down by the end of 2010. As a result of the co-determination negotiations at Imatra and Karhula, the PE coating machine at Karhula will be shut down on a longer schedule than initially planned, whilst profitability will be improved by efficiency measures agreed in the co-determination negotiations. The current sheeting lines at Imatra will cease operations, the smaller one in the beginning of July 2009 and the other one in autumn 2010. Planned related investments in sheeting and PE coating operations will be considered when the investment plans are ready.
Operations at Imatra Mills will be streamlined and measures taken at Varkaus to improve profitability by increasing efficiency in fine paper and newsprint. Further measures to improve productivity in operations, maintenance and administration will be implemented at Veitsiluoto Mill.
The total number of personnel will be reduced by 329 at Imatra and Karhula, by 136 at Varkaus and by 96 at Veitsiluoto. About 330 of these employees affected are currently estimated to have an offer of employment within Stora Enso or other arrangement for their future. The Group will support the rest of the employees affected with financial and other resources for redeployment, retraining and relocation, as in the previous restructuring programme.
Stora Enso will continue to operate the recycling and Ecogas gasification plants at Varkaus to utilise packaging materials collected from households and industry. The collected material comprises mainly corrugated and liquid packaging and wrapping materials. The recycled fibre will be utilised in other Stora Enso mills in Finland, confirming the sustainability of fibre-based packaging.
“We have actively planned and developed ways of helping the employees affected to find new employment inside or outside Stora Enso. We hope that through these actions we can minimise the negative consequences for our employees,” says Juha Vanhainen, Country Manager Finland.
Investments at Imatra and Ingerois mills
At Imatra, investment in the pulp mill will reduce costs and the dependence on Russian roundwood, and the annual capacity of BM 4 will be increased to improve production efficiency and product quality to serve current customers of BM 1 in addition to its current customer base. At Ingerois, the quality, capacity and productivity of the board machine will be improved and the sheeting capacity increased. The board machine projects are scheduled to start immediately and to be completed by the end of 2009. The ongoing pulp mill investment is proceeding according to plan and will be completed in early 2009.
“I’m happy that we have been able to conclude the co-determination negotiations in a constructive manner and consequently decided to invest in our assets to make us more competitive in the future. We have also been able to find a way to continue our recycling beverage cartons concept, which supports our sustainability goals,” says Mats Nordlander, EVP, Consumer Board.