Loading prices...

Register/Sign in
ScrapMonster
Sell Your Junk CarGet an instant quote for your car on ScrapMonster.com
Rubber and Wood June 28, 2019 08:30:35 AM

Stora Enso Decides to Consolidate Spruce Production at Finnish Mills

Paul Ploumis
ScrapMonster Author
Stora Enso intends to stop production at the Kitee sawmill in a phased manner before the end of the current year.

Stora Enso Decides to Consolidate Spruce Production at Finnish Mills

SEATTLE (Scrap Monster): Stora Enso announced plans to consolidate its European operations. The production of Finnish spruce will be consolidated to Varkaus sawmill in Finland. According to the plan, the Kitee sawmill will undergo permanent closure and Varkaus sawmill will see increased production.

According to the company press release, the objective of the restructuring plan is to boost the profitability and competitiveness of operations in the region by creating a fully integrated sawmill for spruce production in Varkaus, optimizing the synergies from its laminated veneer lumber, pulp and board mills. The increased production at the saw mill is expected to create additional 20 full-time jobs.

ALSO READ: Stora Enso Commits €350 Million Investment in Oulu Fine Paper Mill Conversion

The consolidation is part of its profit protection programme for EUR 120 million, whichj aims to achieve significant reductions in variable and fixed costs. Further, it is subject to successful closure of the co-determination negotiations at Kitee sawmill, which is about to be started in August this year. Stora Enso intends to stop production at the Kitee sawmill in a phased manner before the end of the current year. The closure will result in loss of approximately 85 full-time jobs. However, it is not expected to have material impact on the company’s yearly sales and operational EBIT.

The consolidation process will help in creation of better product mix, stronger R&D and innovation, said Jari Suominen, Head of Stora Enso's Wood Products division.

×

Quick Search

Advanced Search