Stora Enso is planning to make organisational changes in its Paper division following the conversion of its Oulu Mill in Finland, which could see as many as 135 jobs lost.
The business is converting the mill into packaging board production and will exit the coated woodfree market, signalling the end for its Lumi paper. The confirmation of the decision, in May, followed a lengthy feasibility study that began last summer and was further revised in March.
In a statement released today (21 October), Stora Enso said the planned changes “could result in a reduction of a maximum of 135 employees in the Paper division by the end of 2020”.
“Stora Enso’s Paper division is planning to make organisational changes to improve competitiveness and ensure efficient customer service after the Oulu Mill conversion for production of kraftliner for packaging,” the company said.
“The planned changes would primarily affect commercial functions and operations support.”
The new organisational setup is expected to be complete in the first quarter of 2021 and the transition to the new organisation will take place in phases “to ensure good customer service”.
Stora Enso added no decisions regarding the planned changes will be taken, nor will there be any redundancies made, until the appropriate co-determination negotiations have been concluded.
Oulu is Stora Enso’s only coated woodfree fine paper mill and currently produces more than a million tonnes of paper a year. Production of LumiPaper will continue until autumn next year. Around 140,000 tonnes are sold into the UK, via merchants Premier Paper and Ovendens, and through direct sales.
Stora Enso’s board of directors has recently appointed Annica Bresky as the new president and chief executive of the company. Bresky will begin in the role on 1 December, replacing current chief executive Karl-Henrik Sundström, who is resigning.