Stora Enso Timber to start negotiations with its personnel at Veitsiluoto Sawmill
STORA ENSO OYJ Stock Exchange Release 3 May 2005 at 11.00
Stora Enso Timber to start negotiations with its personnel at
On 10 May 2005 Stora Enso Timber will start negotiations with
its personnel at Veitsiluoto Sawmill in Finland as required by
the Act on Co-operation within Undertakings. The negotiations
will concern temporary lay-offs of the personnel at Veitsiluoto
Sawmill for productional and financial reasons, in line with the
aims of Stora Enso's European profit improvement programme. At
the same time, Stora Enso Timber is considering all options that
would enable the sawmill to resume production on a profitable
Operations at the Veitsiluoto Sawmill are unprofitable owing to
high raw material costs, declining prices for Nordic redwood
products and high labour costs. The sawmill is modern and
efficient, but under current operating conditions there is no
significant prospect of an improvement in profitability.
The Veitsiluoto sawmill has 92 employees and an annual
production capacity of 300 000 m3 of sawn wood products for the
construction and joinery industries and wood products trade.
The outcome of the negotiations will be announced at the latest
by mid July.
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
p.p. Jussi Siitonen Veli-Matti Tahvanainen