HELSINKI, Finland, June 17, 2021 /PRNewswire/ -- Stora Enso
has completed the co-determination negotiations concerning closing
down the pulp and paper production at its Veitsiluoto site in
Finland. The closure will take
place during the third quarter of 2021. As a result of the
negotiations, 550 people will be permanently laid off. Some 28% of
the redundancies can be managed through pension
arrangements.
In April 2021, Stora Enso
announced a plan to permanently close down pulp and paper
production at its Kvarnsveden and Veitsiluoto sites due to the
declining paper market. As a result of the co-determination
negotiations regarding the Veitsiluoto site, the three paper
machines, chemical pulp and groundwood production, and the sheeting
plant will be closed permanently. The sawmill will continue
operating at the site within the Wood Products division and employ
some 50 persons. Pulp and paper production at Veitsiluoto is
estimated to cease during the third quarter of 2021.
The co-determination negotiations concerning the Kvarnsveden
site in Sweden are still
ongoing.
Due to the closure decision, 550 people will be permanently laid
off at the Veitsiluoto site. Of these employees, 440 work in the
Paper division and 110 at the maintenance company Efora. The
initial estimate of the maximum number of employees affected was
670 people. A maximum of 21 people in Efora's engineering business
unit in Veitsiluoto will be transferred to the engineering company
Etteplan in a transfer of undertakings on 1
August 2021. The redundancies will mostly take place by the
end of January 2022.
Stora Enso will be working closely together with its other
company locations, the City of Kemi and other stakeholders to
support re-employment and re-training of the affected employees.
Our support will include outplacement services as well as
individual and group training for re-employment and re-training. We
will also offer relocation support for people who transfer to other
locations for work, and financial support for employees starting up
their own companies. 28% of the redundancies can be managed through
pension arrangements.
Stora Enso has initiated a project to find future options for
the Veitsiluoto site. An external advisor will be assigned to
identify the different alternatives and to compare their
feasibility. The process is coordinated with the Ministry of
Economic Affairs and Employment, the City of Kemi and other
partners. The Veitsiluoto site has many advantages for future use,
including strong industrial infrastructure with a deep-sea harbour,
a connection to the national electricity grid, access to renewable
energy with potential for expansion, cooling capacity from the sea,
and availability of clean water.
Stora Enso continues to produce woodfree uncoated (WFU) office
papers at the Nymölla site in Sweden.
Earlier release about the plan for the Veitsiluoto site:
20 April 2021: Stora Enso
initiates a plan to permanently close down pulp and paper
production at Kvarnsveden and Veitsiluoto mills
For further information, please contact:
Ulrika Lilja
EVP, Communications and Marketing
tel. +46 72 221 9228
Investor enquiries:
Ulla PaajanenSVP, Investor Relationstel. +358 40 763 8767
Part of the bioeconomy, Stora Enso is a leading global provider
of renewable solutions in packaging, biomaterials, wooden
constructions and paper. We believe that everything that is made
from fossil-based materials today can be made from a tree tomorrow.
Stora Enso has some 23 000 employees, and sales in over 50
countries. Our sales in 2020 were EUR 8.6
billion. Stora Enso shares are listed on Nasdaq Helsinki Oy
(STEAV, STERV) and Nasdaq Stockholm AB (STE A, STE R). In addition,
the shares are traded in the USA
as ADRs (SEOAY). storaenso.com/investors
STORA ENSO OYJ
CONTACT:
For further information, please contact:
Ulrika Lilja
EVP, Communications and Marketing
tel. +46 72 221 9228
Investor enquiries:
Ulla PaajanenSVP, Investor Relationstel. +358 40 763 8767
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