SEATTLE (Scrap Monster): Stora Enso announced that it has completed the co-determination negotiations in connection with the planned closure of pulp and paper operations at its Veitsiluoto site in Finland.
Consequently, the company will permanently lay off 550 employees. Of these, 440 employees belong to the Paper division, whereas 110 people work for the maintenance company Efora. Nearly 28% of the redundancies will be managed through pension arrangements.
The company will work closely with its other locations, the City of Kemi and other stakeholders to offer necessary support to the affected employees. The employees who opt to work in other locations will be provided relocation support. Also, employees who wish to start their own companies will be given financial support.
Accordingly, the three paper machines, chemical pulp and groundwood production, and the sheeting plant will cease to operate. However, the sawmill facility at the site will continue operations with nearly 50 persons. The pulp and paper production at the site is expected to stop during the third quarter of the current year. Declining paper markets had forced the company to arrive at a final decision to close down pulp and paper production at Kvarnsveden and Veitsiluoto sites.
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