Stora Enso takes next step towards more focused, efficient and faster-reacting company

Report this content
Annual cost savings target from Business Area consolidation and significantly   
leaner administration EUR 250 million by end of 2010                            

STORA ENSO OYJ STOCK EXCHANGE RELEASE 23 April 2009 at 5.59 GMT                 

EUR 250 million annual cost reduction; planned headcount reduction up to 2 000  
mainly from leaner management structures                                        
Majority of cost savings by end of 2009, remainder by end of 2010               
New Group Executive Team and consolidated Business Area structure               
Simplified operating models for Group functions                                 

Stora Enso is planning to reorganise its operations with the aim of reducing    
annual costs by EUR 250 million, majority of the reduction to be achieved during
2009 and the remainder by the end of 2010. Up to 2 000 employees will be        
affected, mainly as a result of the leaner management structures. The final     
outcome will depend on the result of the co-determination procedure.            

“In the past two years Stora Enso has taken several proactive and even early    
steps to position the Group for a strong future. From divestments that          
strengthened our balance sheet to difficult restructuring programs in operations
and de-layering the organisation, which together reduced our total fixed costs  
by 4 to 5 margin points in two years, we have had one consistent goal - to make 
the Group stronger, faster reacting and more focused. And yet - with the        
dramatic changes in our operating environment - this has been only the beginning
of our journey,” says Stora Enso CEO Jouko Karvinen.                            
                                                                                
“Today we are also taking the next step to make Stora Enso a simpler,           
faster-reacting and more focused Group. Key objectives of this plan are         
consolidating the organisation and building stronger and more powerful          
businesses that can operationally and strategically react quickly in a rapidly  
changing environment. We aim to simplify decision-making, and move decisions    
clearly closer to the businesses serving our customers.”                        

The planned actions are partially motivated by the recent, radical change in the
operating environment of the forest products industry. The global financial     
crisis and sharp economic downturn require rapid responses to adapt to change.  

The savings will be obtained, according to the plan, mainly by reducing top and 
middle management and by downscaling staff functions and country organisations  
by one third. In addition, Group functions such as Wood Supply and Logistics    
will have a revised operational model and be brought closer to the Business     
Areas.                                                                          

“The critical supply organisations Wood Supply, Logistics and Energy will be    
managed by Business Area driven user boards to increase the clarity and         
accountability of these P/L and balance sheet responsible organisations. Other  
Group functions, including Human Resources, Communications, R&D and Purchasing, 
will be focused by reducing Group and country-level organisations to the        
absolute minimum where quantifiable cross Business Area economies of scale are  
clearly greater than the benefits of being close to the business organisations,”
says Jouko Karvinen.                                                            

New Business Area Structure                                                     
The new organisational structure as of 23 April 2009 will ensure strategic      
flexibility for possible industry consolidation. The new Business Areas are:    

Publication Paper (comprising the former Newsprint & Book Paper and Magazine    
Paper) headed by Juha Vanhainen                                                 
Packaging (comprising the former Consumer Board and Industrial Packaging) headed
by Mats Nordlander                                                              
Fine Paper headed by Hannu Alalauri                                             
Wood Products headed by Hannu Kasurinen                                         

The current transparent external segment reporting will not be changed.         

New Group Executive Team                                                        
As of 23 April 2009, the Group Executive Team comprises the following eight     
members:                                                                        
Jouko Karvinen, CEO                                                             
Hannu Alalauri, EVP, Fine Paper                                                 
Hannu Kasurinen, EVP, Wood Products                                             
Mats Nordlander, EVP, Packaging                                                 
Markus Rauramo, CFO                                                             
Bernd Rettig, EVP, Technology and Strategy, Country Manager Germany             
Elisabet Salander Björklund, EVP, Wood Supply, HR, Sustainability, Country      
Manager Sweden, regional responsibility for Latin America                       
Juha Vanhainen, EVP, Publication Paper, Country Manager Finland                 

Veli-Jussi Potka, who was a member of the Group Executive Team and head of the  
Industrial Packaging Business Area, has been appointed Head of Strategy and M&A,
and Packaging Products within the new Packaging Business Area. Aulis Ansaharju, 
who was a member of the Group Executive Team and head of the Fine Paper Business
Area, is responsible for the EUR 250 million cost savings and change project    
announced today, and in that role he will report to CEO Jouko Karvinen.         

Changes below the Group Executive Team will be in place by 1 July 2009 at the   
latest. Stora Enso will proactively help the affected employees to find         
alternative employment within or outside the Group.                             


For further information, please contact:                                        
Jouko Karvinen, CEO, tel. +358 2046 21410                                       
Markus Rauramo, CFO, tel. +358 2046 21121                                       
Lauri Peltola, Head of Group Communications, tel. +358 50 570 5606              
Keith B Russell, SVP, Investor Relations, tel. +44 7775 788 659                 
Ulla Paajanen-Sainio, VP, Investor Relations and Financial Communications, tel. 
+358 40 763 8767                                                                


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

PRESS CONFERENCE IN HELSINKI                                                    
You are most welcome to a press conference in Helsinki today hosted by CEO Jouko
Karvinen and CFO Markus Rauramo regarding the reorganisation and future of the  
Group. The conference will be held in Finnish and will not be webcast.          

Time: 	13.00 Finnish time                                                       
Location: 	Bank Auditorio                                                       
Address: 	Unioninkatu 22, Helsinki                                              
Hosts: 	Jouko Karvinen, CEO                                                     
	Markus Rauramo, CFO                                                            


Stora Enso is a global paper, packaging and forest products company producing   
newsprint and book paper, magazine paper, fine paper, consumer board, industrial
packaging and wood products. The Group has 32 000 employees and 85 production   
facilities in more than 35 countries worldwide, and is a publicly traded company
listed in Helsinki and Stockholm. Our annual production capacity is 12.7 million
tonnes of paper and board, 1.5 billion square metres of corrugated packaging and
6.9 million cubic metres of sawn wood products, including 3.2 million cubic     
metres of value-added products. Our sales in 2008 were EUR 11.0 billion.        



STORA ENSO OYJ                                                                  



	Jari Suvanto			Ulla Paajanen-Sainio

Subscribe