Stora Enso plans to rationalise Building Solutions Finland
STORA ENSO OYJ PRESS RELEASE 26 March 2015 at 12.00 EET
Stora Enso plans to rationalise the operational model in Building Solutions Finland and starts co-determination negotiations with all employees within this unit. The co-determination negotiations will include a possible reduction in personnel by approximately 50 people and a possible closure of the Pälkäne production unit. The plan would have no material impact on the sales and on the operating profit of Stora Enso's Wood Products division.
”We were one of the first companies to develop modular wooden constructions in Finland, and being first entails a learning phase. Our growing knowledge has enabled us to find ways to improve and increase operational performance. We are redefining our business model with a plan to focus our production and competence into one site. One compact and efficient production line, using raw material from our upcoming investment in Varkaus, would be able to serve existing and future market needs,” says Jari Suominen, Head of Stora Enso Wood Products.
”Despite the current challenges in the Finnish construction sector, we have great faith in the future of wood as a building material. Future products from our investment in Varkaus, combined with the existing Building Solutions, will secure an attractive offering to our customers,” Jari Suominen concludes.
No decisions regarding the possible closure or a reduction in personnel will be taken until the co-determination negotiations have been concluded. Stora Enso would make every effort to co-operate with the local community to help the affected staff find new employment opportunities. All job openings in other Stora Enso units would be available to those affected.
For further information, please contact:
Ulrika Lilja, EVP, Global Communication, tel. +46 1046 71668
Cathrine Wallenius, SVP Communications, Wood Products, tel. +46 70 209 2429
www.storaenso.com
www.storaenso.com/investors
Stora Enso Building Solutions is a unit belonging to Stora Enso's Wood Products division. It is a major producer of CLT (Cross Laminated Timber) and CLT-based construction solutions for residential and commercial houses and buildings. Building Solutions has two CLT production units, Ybbs and Bad St. Leonhard, in Austria and two modular building production units, Pälkäne and Hartola in Finland.
Stora Enso is a leading global provider of renewable solutions in packaging, biomaterials, wood and paper. Our aim is to replace non-renewable materials by innovating and developing new products and services based on wood and other renewable materials. We employ some 27 000 people in more than 35 countries, and our sales in 2014 were EUR 10.2 billion. Stora Enso shares are listed on NASDAQ OMX Helsinki (STEAV, STERV) and Stockholm (STE A, STE R). In addition, the shares are traded in the USA as ADRs (SEOAY) on the International OTCQX over-the-counter market.
STORA ENSO OYJ
For further information, please contact:
Ulrika Lilja, EVP, Global Communication, tel. +46 1046 71668
Cathrine Wallenius, SVP Communications, Wood Products, tel. +46 70 209 2429