Stora Enso intends to close down its Reisholz and Berghuizer mills

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STORA ENSO OYJ  Stock Exchange Release 4 October 2006 at 13.00

Stora Enso intends to close down its Reisholz and Berghuizer 
mills
Summa and Uetersen mills are to continue operating while further 
improving their financial performance

Stora Enso has announced its intention to close down Reisholz 
Mill in Germany and Berghuizer Mill in the Netherlands. The 
planned closures are subject to local consultation. Summa Mill 
in Finland and Uetersen Mill in Germany will remain in operation 
while further improving their financial performance.

These four mills have been under scrutiny since the announcement 
of Stora Enso’s Asset Performance Review (APR) in October 2005. 
During the past year all four mills have implemented a number of 
actions to increase their competitiveness. The performance of 
each of these mills following these improvements has been 
evaluated using a range of financial and operational measures, 
with long-term profitability and strategic fit as key criteria. 

Reisholz and Berghuizer mills planned to be closed due to lack 
of profitability
Reisholz Mill, which is part of Stora Enso’s Publication Paper 
division, is planned to be closed in phases by the end of 2007. 
The intention to close the mill is based on its lack of 
profitability. Further increasing energy and wood prices in 
Germany also influenced the decision. Reisholz Mill, which 
produces improved super-calendered (SC) papers, has a total 
annual production capacity of 215 000 tonnes. The mill has 378 
employees.

Berghuizer Mill, which is part of Stora Enso’s Fine Paper 
division, is planned to be closed during 2007. The intention to 
close the mill is based on its lack of profitability. The annual 
production capacity of Berghuizer Mill, which produces woodfree 
uncoated (fine) paper (e.g. copy and printing paper), is 235 000 
tonnes. The mill has 297 employees. 

Stora Enso intends to supply customers of Reisholz and 
Berghuizer mills from its other mills following the planned 
closures. 

Stora Enso will record total provisions and write-downs related 
to the planned closures of EUR 270 million in the third quarter 
of 2006. Approximately EUR 180 million of the provisions will 
have a cash impact. The cash impact will be realised as the 
actions occur. A significant portion of the cash cost is 
expected to be offset by income from realisable assets. 

Reisholz and Berghuizer mills had combined external sales of EUR 
142 million in the first six months of 2006. In the same period 
the combined operating profit was slightly negative. Working 
capital at the end of June 2006 was EUR 30 million. 

Summa Mill has improved its financial performance through 
locally agreed efficiency measures
Summa Mill, which is part of Stora Enso’s Publication Paper 
division, has improved its financial performance. Local 
agreements have been concluded on operator maintenance and 
sharing maintenance resources with other mills in Kymenlaakso, 
and salary and wage freezes and changes to salary and wage 
structures have reduced costs. The mill has also been gradually 
shifting its standard newsprint production towards higher-value-
added products such as improved newsprint, book paper and 
magazine paper. 

Uetersen Mill continues with combined product offering with Oulu 
Mill
Uetersen Mill, which is part of Stora Enso’s Fine Paper 
division, has in combination with Oulu Mill in Finland an 
important role in the graphic (coated fine) paper business 
area’s product portfolio. Uetersen Mill is centrally located 
close to large customer groups but has also improved its 
financial performance. The measures to improve financial 
performance include reduction of personnel and adjustments of 
local labour agreements.

Both Summa Mill and Uetersen Mill are expected to operate 
without new investments for at least the next several years.

“The work that has been done in Summa and Uetersen mills 
recently has resulted in improved profitability, but further 
profit improvement is still needed,” comments Stora Enso’s CEO 
Jukka Härmälä. “The analysis of the alignment of the Group’s 
strategy and its product and production asset portfolio 
continues. We are committed to further enhancing profits to 
achieve our return on capital target by continuing to monitor 
closely the performance of not only these two mills but all our 
assets.”


Stora Enso’s second half 2006 results and non-recurring items 
for third quarter 2006
The Group’s reported operating profit for the third quarter is 
expected to be negatively impacted by relatively high 
maintenance stoppage costs, necessary market-related 
curtailments in the coated magazine paper business area and 
costs related to a labour dispute as a consequence of machine 
closures at Corbehem Mill. In the fourth quarter the impact of 
market-related curtailments and costs related to a labour 
dispute at Corbehem Mill continues, in addition to the negative 
impact of the gradual start-up of the Port Hawkesbury Mill. 

Stora Enso will record the following non-recurring items in its 
operating result for the third quarter 2006: 

-	a capital gain of about EUR 186 million, including an 
additional dividend, on the divestment of Celbi Pulp Mill 
in Portugal, which was finalised in August.
-	impairment and restructuring provisions of EUR 47 million 
on the divestment of Wolfsheck Mill in Germany, which was 
finalised in September.
-	an additional restructuring provision of EUR 7 million 
relating to the social plans at Corbehem Mill in France and 
previously announced machine closures.
-	impairments of EUR 21 million and restructuring provisions 
of EUR 3 million relating to Stora Enso Timber’s fixed 
asset impairments in Germany and Estonia, and to 
restructuring of Stora Enso Timber’s sales network. 
-	a provision of approximately CAD 20 million (EUR 14 
million) relating to post-employment benefits at Port 
Hawkesbury Mill in Canada as a result of the new labour 
agreement and decision to restart the mill.
-	provisions and write-down of EUR 270 million relating to 
the planned closures of Berghuizer and Reisholz mills.




For further information, please contact:
Jukka Härmälä, CEO, tel. +358 2046 21404
Hannu Ryöppönen, CFO, tel. +358 2046 21450
Kari Vainio, EVP, Corporate Communications, tel. 
+44 7799 348 197
Keith B Russell, SVP, Investor Relations, tel. +44 7775 788 659
Ulla Paajanen-Sainio, VP, Investor Relations and Financial 
Communications, tel. +358 2046 21242


www.storaenso.com
www.storaenso.com/investors

CONFERENCE CALL FOR MEDIA AND ANALYSTS
A conference call for media representatives and analysts will be 
arranged today at 15:00 Helsinki time (13:00 UK time). Dial-in 
numbers are as follows: +44 (0)20 7806 1955 from Europe and +1 
718 354 1388 from the USA

A live webcast of the conference call can be accessed from 
www.storaenso.com/investors.

OTHER SUPPLEMENTARY MATERIAL
Presentation material will be available at 14:00 Helsinki time 
(12:00 UK time) on www.storaenso.com/investors.

A map of the mills under scrutiny is available at 
http://bmt.storaenso.com/storaensolink.jsp?imageid=20061004
Please, copy and paste the link into your web browser. 

For free broadcast-standard video content about Stora Enso, 
please log onto www.thenewsmarket.com/storaenso.  You can 
preview and request broadcast-standard video which will be 
delivered digitally or by tape. Registration and video is free 
to the media.

Previous press releases concerning Stora Enso's profit 
improvement programmes available at www.storaenso.com/press:

-1 September 2006: Stora Enso finalises the divestment of 
Wolfsheck Mill
-25 August 2006: Stora Enso divests its Wolfsheck Mill to ARQUES
-8 August 2006: Stora Enso finalises divestment of Celbi Pulp 
Mill and sale of Advance Agro shares 
-31 July 2006: Stora Enso finalises the divestment of Pankakoski 
Mill
-21 July 2006: Stora Enso sells its Pankakoski Mill to a group 
of private investors
-8 June 2006: Stora Enso sells its Celbi Pulp Mill to Altri
-31 March 2006: Stora Enso finalises the divestment of Grycksbo 
Mill
-22 March 2006: Stora Enso Timber restarts Veitsiluoto Sawmill 
at lower production volume
-2 March 2006: Stora Enso to sell its Grycksbo and Linghed mills
-21 December 2005: Stora Enso’s profitability improvement 
programmes ahead of schedule
-27 October 2005: Stora Enso creates platform for stronger 
financial performance
-23 August 2005: Stora Enso is exploring the possibility of 
selling its Grycksbo Mill
-20 June 2005: Stora Enso Timber completes negotiations with its 
personnel at Veitsiluoto Sawmill
-3 May 2005: Stora Enso Timber to start negotiations with its 
personnel at Veitsiluoto Sawmill


STORA ENSO OYJ



p.p.	Jussi Siitonen		Leena Bergqvist
		

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