Stora Enso reorganises its core product

STORA ENSO OYJ  Stock Exchange Release 20 March 2003 at 16.15


Stora Enso reorganises its core product areas

Stora Enso is changing its organisational structure to reflect 
the Group's strategic principle of being operated and managed as 
one industrial group. The new structure will be streamlined 
around Stora Enso's core product areas: Paper, Packaging and 
Forest Products.

The present organisation has been successful during integration 
of Stora Enso and the basic structure will therefore be 
retained. The reorganisation is intended to improve coordination 
and cooperation between the units within the three core product 
areas and to facilitate more focus on Stora Enso's growth areas 
in North America, Asia Pacific and Latin America.

Paper
Stora Enso's current paper divisions will form the new Paper 
Product Area comprising the Publication Papers, Fine Paper, 
North America and Merchants divisions.

The current Newsprint and Magazine Paper divisions will be 
merged to form the new Publication Papers division. Speciality 
Papers, which is now part of the Packaging Boards division, will 
form a new business area within Fine Paper.

The objective is to improve cooperation between paper-related 
businesses in strategy, sales and marketing, and production. 
This will result in a more coordinated approach to customers 
through improved customer relationship management. Prioritising 
of mergers, acquisitions and investments will be enhanced, and 
capacity will be more efficiently managed. Synergies are 
expected as a result of easier exchange of best practice. 

The Paper Product Area will be headed by Kai Korhonen, currently 
Senior Executive Vice President, Stora Enso North America. 

The divisions within the Paper Product Area will be headed by:

- Publication Papers: Bernd Rettig, currently SEVP, 
  Magazine Paper 
- Fine Paper: Jussi Huttunen, SEVP, who will remain head of 
  the division 
- North America: Lars Bengtsson, currently SEVP, 
  Newsprint 
- Merchants: Sven Rosman, EVP, who will remain head of the 
  division 

Packaging
The Packaging Product Area will comprise Consumer Boards, 
Corrugated Packaging, Industrial Papers and Cores and 
Coreboards. Senior Executive Vice President Pekka Laaksonen will 
remain head of the product area. The head of Consumer Boards, 
Senior Vice President Niilo Pöyhönen, will join Stora Enso's 
Management Group.

The heads of the Paper and Packaging Product Areas will report 
to the CEO.

Forest Products
Timber, the Pulp Competence Centre and Forest will be brought 
together as the new Forest Products Product Area, headed by Arno 
Pelkonen, currently Senior Executive Vice President, Timber 
Products. The aim is to attain better coordination between 
sawmilling, pulping and wood procurement. This will result in 
better integration of wood procurement and optimisation of 
global wood flows. The head of Forest Products will report to 
the Deputy CEO.

Other changes
A new Latin America division will be formed to manage local 
projects and to coordinate sales company activities. It will be 
headed by Nils Grafström, currently Executive Vice President, 
Market Service and IT, who will report to the Deputy CEO.

Market Services, consisting of the Sales Network and Transport 
and Distribution, will become a separate staff function headed 
by Senior Vice President Petri Wager, who will report to the 
CEO. The IT staff function will come under the Deputy CEO.

Responsibility for the Energy department will be transferred to 
the Deputy CEO.

The new organisational structure will take effect on 1 May 2003. 
The organisational changes mentioned above will result in some 
alterations to the Company's financial reporting, although the 
results for Q1 2003 (released on 29 April 2003) will not be 
affected and will be reported as earlier.


For further information, please contact:
Jukka Härmälä, Chief Executive Officer, tel. +358 2046 21404
Björn Hägglund, Deputy Chief Executive Officer, 
tel. +46 70 528 2785
Kari Vainio, Executive Vice President, Corporate 
Communications, tel. +44 77 9934 8197
Keith B Russell, Senior Vice President, Investor Relations, 
tel. +44 77 7578 8659

An image bank of pictures that may be freely used to illustrate 
articles about Stora Enso is available at 
http://www.storaenso.com/images
Direct link to selected pictures: 
http://www.storaenso.com/pressimage.asp?ID=030320


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

STORA ENSO OYJ


p.p.	Jussi Siitonen		Pauli Mäkimaa
	


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