Stora Enso restructuring to improve long-term competitiveness and profitability

Stora Enso has progressed with its restructuring actions, announced on 15 June 2023, aimed at strengthening the Group’s long-term competitiveness and creating a decentralised and more customer centric operating model. These actions would reduce the number of employees by approximately 1,150. The parts of the change negotiations completed so far, will result in a reduction of 710 employees.

Stora Enso has:

  • Concluded the change negotiations at its Sunila site and decided to permanently close pulp production and lignin extraction. Production at the site has been at a standstill since May and will not be ramped up. The closure will impact 240 employees. The pilot plant for bio-based battery material will, as previously communicated, continue its operations at the Sunila site.
  • During the third quarter, permanently closed down one of the four containerboard production lines at its Ostrołęka site in Poland. The production line had an annual capacity of 120,000 tonnes of recycled containerboard. The closure impacts 50 employees locally.
  • In June 2023, completed change negotiations in the Packaging Materials division with a reduction of approximately 250 positions in its management and support functions.
  • The consultation with employee representation relating to the planned closure of the De Hoop containerboard site in the Netherlands is ongoing and is expected to be concluded during the fourth quarter of 2023. The site has an annual capacity of 380,000 tonnes, employing 185 people.
  • The company has decided to permanently close its Näpi sawmill. The closure will take place during the fourth quarter of 2023 and directly impact approximately 90 employees in Estonia.
  • Concluded change negotiations regarding a reduction of office employees within its Group functions in Finland. As a result of the negotiations, approximately 80 employees within the Group functions in Finland will be laid off. The negotiations in other countries are still ongoing and are expected to be concluded by the end of 2023.

The completed and ongoing restructuring actions would decrease Stora Enso’s annual sales by approximately €380m, based on the 2022 numbers. Operational EBIT is expected to improve by approximately €110m annually. Stora Enso has recorded in the Q2/2023 results as an item affecting comparability (IAC) approximately €140m non-cash asset impairments related to the planned closures and approximately €80m costs relating to the potential lay-offs and restructuring expenses, with cash outflows impacting future quarters.

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