Stora Enso Wood Products plans temporary production curtailments to improve profitability

STORA ENSO OYJ STOCK EXCHANGE RELEASE 30 October 2008 at 07.00 GMT              

Stora Enso is planning additional production curtailments in its Wood Products  
business area through temporary mill closures, shift reductions, efficiency     
measures and extended maintenance stoppages in Finland, Estonia and the Czech   
Republic. The Group has already recently agreed similar measures in Austria,    
Sweden and the Baltic States. In addition, Stora Enso plans to restructure its  
joinery component business in Estonia by permanently closing down the Viljandi  
component mill and transferring the business to Imavere sawmill. These planned  
new measures and already agreed new measures would reduce total production by   
about 1.2 million cubic metres per year in Finland, the Baltic States, Austria, 
the Czech Republic and Sweden.                                                  

Stora Enso will start co-determination negotiations concerning possible         
temporary lay-offs of Wood Products personnel at its Kitee, Tolkkinen and Kotka 
sawmills and possible temporary and permanent lay-offs at its distribution      
company Puumerkki Oy in Finland. The total number of employees affected by the  
co-determination negotiations in Finland is about 460. It is also planned to    
reduce the number of employees at Plana sawmill in the Czech Republic by about  
30. Further about 40 jobs could be lost at Viljandi in Estonia. All these       
measures are subject to local consultation as required.                         

Earlier this month, Stora Enso concluded co-determination negotiations to       
curtail production at Ybbs sawmill in Austria from the fourth quarter of 2008   
and Kopparfors sawmill in Sweden from the first quarter of 2009. These actions  
together with other efficiency measures already implemented in Poland and the   
Baltic States affect approximately 175 employees. Paikuse sawmill in Estonia,   
with an annual capacity of 170 000 cubic metres, was permanently closed down in 
October, instead of December as announced on 10 September 2008. In addition,    
most Stora Enso sawmills plan to take extended Christmas breaks to curtail      
production and adjust inventory levels.                                         

Solution for weaker demand, lower prices and oversupply                         
As explained in Stora Enso's interim review for the third quarter of 2008, the  
Wood Products business area faces very difficult operating conditions due to    
weakening demand, falling sales prices and continuing oversupply in most        
markets. Raw material costs have not adjusted quickly enough to this new        
reality. The operating conditions and profitability problems are severest in    
Finland.                                                                        

“The planned actions will strengthen our position for the very difficult        
quarters to come, although we cannot be sure that they will be enough. We will  
limit our exposure to the least competitive raw material regions, aggressively  
reduce our inventory levels and reorganise our product portfolio to improve     
profitability. We are still determined to maintain our level of service to our  
customers. We also remain committed to minimising the impact of these planned   
actions on our personnel and their communities. In the negotiations, we shall   
jointly with local authorities consider all possibilities for helping the       
employees affected,” says Hannu Kasurinen, head of Stora Enso Wood Products.    

For further information, please contact:                                        
Hannu Kasurinen, EVP, Wood Products, tel. +358 2046 21222                       
Kari Vainio, EVP, Corporate Communications, tel. +44 7799 348 197               
Keith B Russell, SVP, Investor Relations, tel. +44 7775 788 659                 
Ulla Paajanen-Sainio, Vice President, Investor Relations and Financial          
Communications, tel. +358 2046 21242                                      

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


STORA ENSO OYJ                                                                  




p.p. 	Pia Aaltonen-Forsell		Leena Bergqvist

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