Varkaus Mill
Stora Enso plans to consolidate the Finnish spruce (whitewood) production to its Varkaus sawmill which means a permanent closure of the Kitee sawmill and a production increase for Varkaus. Source: Timberbiz
The objective is to improve profitability and competitiveness by creating a fully integrated sawmill for spruce production in Varkaus, optimising synergies from the existing LVL, pulp and board mills.
The consolidation plan is part of Stora Enso’s profit protection program targeting reductions in variable and fixed costs. The possible consolidation is subject to completion of negotiations at the Kitee sawmill which will start in August.
The production at Kitee sawmill is planned to be stopped gradually until the end of 2019.
“The planned consolidation would enable us to optimise the full potential of Varkaus mill as an integrated mill, delivering a variety of value added wood products such as further processed sawn wood and LVL,” Jari Suominen, Head of Stora Enso’s Wood Products division said.
“This would provide us possibilities for improved product mix, stronger R&D and innovation as well as opportunities for efficient and automatised production.
“In Varkaus we also see strong synergies with Stora Enso’s pulp and board mills when it comes to shared raw material, logistics, infrastructure and energy usage.
“This consolidation would further enhance Stora Enso’s position as a global provider of high quality wood products and innovative wood-based solutions”
At the Kitee sawmill the planned closure would result in a reduction of maximum 85 full time equivalent position.
The Varkaus sawmill and LVL mill currently employs a total of 105 people. An increased production in Varkaus would require an additional 20 full time or equivalent positions.
Decisions regarding the planned consolidation, closure and employee reduction will be taken after negotiations have concluded.
