Stora Enso is planning restructuring actions to strengthen the Group’s long-term competitiveness, improve profitability and focus capital allocation in strategic growth markets. Source: Timberbiz
The company is also taking the next step in driving a decentralised operating model targeting increased customer centricity, business focus and cost reductions.
The planned restructuring actions, combined with previously initiated negotiations in the Packaging Materials division, would result in total reductions of approximately 1150 employees.
Stora Enso plans to permanently close its Sunila pulp production unit in Finland, the De Hoop containerboard site in the Netherlands, one containerboard line at its Ostrołęka site in Poland, and the Näpi sawmill in Estonia. The closures would target a reduction of approximately 600 employees.
The Sunila site has an annual capacity of 375,000 tonnes of long-fibre pulp, employing approximately 270 people. The planned closure would take place during the second half of 2023 and affect an estimated 250 employees, decreasing Stora Enso’s annual market pulp capacity by 13%.
As a consequence of the overcapacity in the European containerboard market, Stora Enso is proposing to permanently close down both production lines at the De Hoop site in the Netherlands and one of the four production lines at its Ostrołęka site in Poland.
The De Hoop site, part of the De Jong Packaging acquisition in 2023, employs approximately 185 people and has a total annual capacity of 380,000 tonnes of containerboard, honeycomb and plasterboard.
Stora Enso plans to close down its Näpi sawmill in Estonia due to reduced long-term raw material availability, increased wood costs and low profitability.
It will initiate change negotiations regarding a planned reduction of office employees within its Group functions. Approximately 1,300 employees are within the scope of the Group function negotiations, with a planned reduction of approximately 300 employees.
Stora Enso has recently completed a majority of the change negotiations in its Packaging Materials division with a reduction of approximately 250 positions in its management and support functions.
“These measures are of course very difficult and would not be proposed unless it was absolutely necessary for our long-term competitiveness. We are at a critical juncture in our strategy advancement, and to further our market position an increased focus on capital allocation and decentralised empowerment is needed. This sadly means that assets suffering from challenged profitability would need to be closed, in combination with a more streamlined headquarter organisation. Through these actions we would be able to continue to deliver strategic growth from a more resilient and cost-efficient business platform, better equipped to support the long-term growing demand for Stora Enso’s renewable products,” said Annica Bresky, Stora Enso’s President & CEO.
