Paper manufacturer Stora Enso to lay off 1,150 people

Finnish paper and packaging manufacturer Stora Enso has announced plans to close four European facilities and lay off 1,150 employees. The company said in a written statement that it is preparing for restructuring actions to increase long-term competitiveness and profitability. Stora Enso Chief Executive Officer Annica Bresky, whose views were included in the statement, said, “We are at a critical turning point in our strategy and we need to focus more on capital allocation and decentralized authorization to advance our market position. Unfortunately, this means that unprofitable assets will have to be closed.” Bresky added that the company will continue to take strategic growth steps for its renewable products. The company plans to permanently close its Sunila pulp production unit in Finland, its De Hoop containerboard plant in the Netherlands, a containerboard line at its Ostroleka plant in Poland, and its Napi sawmill in Estonia. Stora Enso said the halt in imports of wood from Russia had led to increased competition for pulp and had made the Sunila site no longer cost-effective. "The planned restructuring actions will result in the layoff of approximately 1,150 employees in total," the statement said.