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Stora Enso Timber completes negotiations with its personnel at Veitsiluoto Sawmill

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STORA ENSO OYJ Stock Exchange Release 20 June at 14.30


Stora Enso Timber completes negotiations with its personnel at 
Veitsiluoto Sawmill

The earlier published negotiations concerning temporary lay-offs 
of the whole personnel at Veitsiluoto Sawmill in Finland for 
productional and financial reasons were completed today. The 
conclusion of the negotiations, which started in May, is that 
presently there is no reasonable option for continuing 
operations on a profitable basis. All 92 employees will 
therefore be laid off step by step starting from 11 July 2005. 
The lay-offs are expected to last until at least the end of the 
year. 

During the lay-off period, Stora Enso Timber will continue to 
investigate options that might enable the sawmill to resume 
production on a profitable basis. Stora Enso Timber will 
continue to serve its customers from its other sawmills. The 
negotiations and following lay-offs are in line with the aims of 
Stora Enso's European profit improvement programme, Profit 2007.

Operations at Veitsiluoto Sawmill are unprofitable owing to high 
raw material costs, declining prices for Nordic redwood products 
and high labour costs. Under current operating conditions there 
is no significant prospect of an improvement in profitability.

Veitsiluoto Sawmill has an annual production capacity of 300 000 
m3 of sawn wood products for the construction and joinery 
industries and wood products trade. 


For further information, please contact:
Pekka Hämäläinen, Senior Vice President, Nordic Production 
Group, Stora Enso Timber, tel. +358 400 553 984
Peter Nissen, Mill Manager, Stora Enso Timber, Veitsiluoto Mill, 
tel. +358 400 294413
Matti Karjula, Senior Vice President, Wood Supply Finland, tel. 
+358 40 520 6240
Kari Vainio, Executive Vice President, Corporate Communications, 
tel. +44 7799 348 197
Keith B Russell, Senior Vice President, Investor Relations, tel. 
+44 20 7016 3146
Ulla Paajanen-Sainio, Vice President, Investor Relations and 
Financial Communications, tel. +358 40 763 8767

STORA ENSO OYJ



Ulla Paajanen-Sainio	Jyrki Kurkinen

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