FINLAND (News release) -- Stora Enso has completed the union negotiations regarding the closure of pulp and paper production at Kvarnsveden. A total of 340 people will be permanently laid off. Some 25% of the redundancies can be managed through pension arrangements, and 100 people have already found new jobs within Stora Enso or with an external employer. The redundancies will mostly take effect in November.

In April 2021, Stora Enso announced a plan to permanently close down pulp and paper production at its Kvarnsveden site due to the declining paper market. As a result of the co-determination negotiations regarding the Kvarnsveden site, pulp and paper production will be closed permanently from 30 September 2021. The customer service centre at Kvarnsveden will be closed by 31 December 2021. The power plant will continue to operate, but only for the purpose of district heating and for maintaining the buildings onsite.

When the co-determination plan was announced in April, the maximum personnel impact was estimated to be 440 people. As a result of the negotiations, 340 people will be permanently laid off. Some 25% of the redundancies can be managed through pension arrangements, and 100 people have already found new jobs within Stora Enso or with an external employer. This includes employees who will work with energy production at the power plant. The redundancies will mostly take place in November.

Stora Enso offers individual support to the affected employees. This includes re-training and relocation support for people who transfer to other locations for work. We will also offer financial support for employees starting up their own companies. Stora Enso collaborates with the City of Borlänge and other local and regional stakeholders through various activities, such as recruitment fairs.

Stora Enso has initiated a project to find future options for the Kvarnsveden site. The process is being coordinated with the City of Borlänge and other regional and national stakeholders. The Kvarnsveden site offers many advantages for future use, including strong industrial infrastructure, a railway connection to Gothenburg harbour, a connection to the national electricity grid, and availability of clean water.

Stora Enso continues to produce supercalendered (SC) papers at its Langerbrugge site in Belgium and its Maxau site in Germany, and improved newsprint at the Anjala site in Finland.