News

More than 500 staff could be affected in Stora Enso's wood products division as the paper giant starts negotiations over temporary lay-offs.

The Finnish company has said it will implement additional production curtailments in the division, through temporary mill closures and efficiency measures.

Hannu Kasurinen, head of wood products, said: "The actions will strengthen our position for the very difficult quarters to come, although we cannot be sure that they will be enough."

Stora Enso blamed the current very difficult operating conditions on weakening demand, falling sales prices and continuing oversupply in most markets.

The measures will reduce total production by 1.2m cubic metres per year in Finland, the Baltic States, Austria, the Czech Republic and Sweden.

Stora Enso will permanently close down its Viljandi component mill in Estonia and transfer the business to its Imavere sawmill.

Negotiations will soon start over possible lay-offs of staff at its Kitee, Tolkkinen and Kotka sawmills and layoffs at distributor Puumerkki in Finland.

Around 460 staff will be affected in Finland, while a further 30 job losses are expected at the Plana sawmill in the Czech Republic.

Stora Enso measures
• Around 500 staff affected
• Temporary mill closures, shift cuts, efficiency measures and extended maintenance stoppages
• Permanent closure of Viljandi component mill
• Affected areas: Finland, the Baltic states, Austria, the Czech Republic, Sweden