Stora Enso recently confirmed it plans to permanently shut down its pulp and paper mills in Kemi, Finland and Kvarnsveden, Sweden. These closures will reduce paper production capacity by 35% to 2.6m tonnes. The planned closures will take place during the third quarter of 2021, and affect directly 670 people in Finland and 440 people in Sweden. The company says it is now focussing on the stable markets of packaging papers, and reducing exposure from the declining general paper market.
“This is heavy news for our company and our colleagues at Veitsiluoto and Kvarnsveden mills. Our people at the sites are very competent and have done their utmost during very difficult circumstances. Unfortunately, in the rapidly declining paper market, we need to adjust our production capacity to improve the competitiveness of our total paper business. This sadly means the closure of unprofitable assets. As communicated last year, we have reviewed our strategy and are shaping our business for accelerated growth and value. We are focusing on packaging, building solutions and biomaterials innovations, where we see strong growth potential,” says Annica Bresky, Stora Enso President and CEO.
