Stora Enso reports progress with restructuring actions to improve long-term competitiveness and profitability
Monday, September 4, 2023 1:00 pm
HELSINKI (News release) -- Stora Enso has progressed with its restructuring actions, announced on 15 June 2023, aimed at strengthening the Group's long-term competitiveness and creating a decentralised and more customer centric operating model. These actions would reduce the number of employees by approximately 1,150. The parts of the change negotiations completed so far, will result in a reduction of 710 employees. Closure of pulp unit in Finland, Biomaterials division Restructurings in the Packaging Materials division In June 2023, Stora Enso completed change negotiations in the Packaging Materials division with a reduction of approximately 250 positions in its management and support functions. The consultation with employee representation relating to the planned closure of the De Hoop containerboard site in the Netherlands is ongoing and is expected to be concluded during the fourth quarter of 2023. The site has an annual capacity of 380,000 tonnes, employing 185 people. Closure of sawmill in Estonia, Wood Products division Group office employee reductions The completed and ongoing restructuring actions would decrease Stora Enso's annual sales by approximately Euro 380 million, based on the 2022 numbers. Operational EBIT is expected to improve by approximately Euro 110 million annually. Stora Enso has recorded in the Q2/2023 results as an item affecting comparability (IAC) approximately Euro 140 million non-cash asset impairments related to the planned closures and approximately Euro 80 million costs relating to the potential lay-offs and restructuring expenses, with cash outflows impacting future quarters.
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