Stora Enso Announces Massive Lay-Offs at Finland Mills

SEATTLE (Scrap Monster): Stora Enso will commence temporary lay-off talks at more mills in Finland.

The company noted that it has decided to expand the co-determination process on temporary lay-offs to its Packaging Materials division. The negotiations at several of its Finnish mills are expected to start on 21st April, 2020. This is feared to affect nearly 2,000 employees at its Imatra, Ingerois, Varkaus and Heinola mills. The staff at Efora will also be impacted, said the company press release.

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The lay-off schedule will be implemented in 2020 in several short periods for a maximum duration of 90 days.

Stora Enso cited uncertainties on account of coronavirus pandemic and its potential impacts on its businesses as the reasons for the decision. The reduced economic activity across the European countries is expected to have considerable impacts on many industrial segments. As per market participants, the region has already started witnessing unprecedented demand drop in key markets.

Earlier, the company had initiated co-determination process for employees belonging to Oulu pulp and paper mill, Veitsiluoto pulp, paper and sawn timber facility in Kemi and to some employees of the company’s wood supply organization.