STORA ENSO's organization takes shape

STORA ENSO'S ORGANIZATION TAKES SHAPE The proposed merger of Enso and STORA is still being discussed between the EU authorities and the two companies. A final decision from the European Commission is expected by December 4, 1998 at the latest. Quotations for STORA ENSO shares on the Helsinki and Stockholm stock exchanges are planned to start on December 30, 1998. Working groups comprising participants from both companies have continued to work throughout the autumn. Planning of STORA ENSO's organization has now advanced to the stage where the structure and geographical locations of the divisions and the structure of the corporate staff functions can be announced. The organization of the Executive Committee, published in July, has been slightly modified. Esko Mäkeläinen is in charge of accounting, business control and legal affairs, and Ingvar Petersson is responsible for corporate finance and information technology. Kari Vainio's area of responsibility has been widened to include investor relations in addition to internal and external communications. Per Knuts, who was appointed a director of STORA ENSO, has retired from STORA and, as of November 1, 1998, his area of responsibility - productivity improvement - has been transferred to Sten Holmberg, who is currently in charge of STORA's planning and analysis. Per Knuts has however been contracted to continue to support STORA ENSO in some areas, among them the productivity program. STORA ENSO's divisions STORA ENSO's divisions will be located in: Düsseldorf, Germany: Magazine Papers, Newsprint and Fine Papers Helsinki, Finland: Packaging Boards Gävle, Sweden: Pulp Gothenburg, Sweden: Merchants Brand, Austria: Sawn Products Singapore: Asia/Pacific The Magazine Papers division will be headed by Horst Thaler. Other members of the divisional management team are Peter Mersmann (marketing and sales), Hansjörg Kessler (division planning, e.g. strategy, investments, environment, production and R&D), Martin Schotten (operational control), Seppo Toikka (financial control), and Karl- Heinz Haff (human resources). The division comprises three areas: Uncoated Magazine Papers Mills: Reisholz, Port Hawkesbury, Langerbrugge, Summa and Kvarnsveden. Operations will be coordinated by Stig Andersson. Coated Magazine Papers Mills: Kabel, Corbehem, Veitsiluoto, Kotka and Anjala. Operations will be coordinated by Bernd Rettig. E Holtzmann & Cie. AG will be headed by Walter Müller. Technical Office Papers will also report to Horst Thaler. Head of the Newsprint division will be Kai Korhonen. The division's management team also includes Jukka Kaarlehto (marketing and sales), Kari Knuts (division planning), Seppo Toikka (finance and control), Karl-Heinz Haff (human resources), together with the following mill managers: Hannu Karppinen (Anjala and Summa), John Svensson (Hylte), Lars-Ove Staff (Kvarnsveden), Heikki Tarvonen (Sachsen Papier) and Kari Saramäki (Varkaus). The Newsprint division will be split into four business areas: Newsprint will be coordinated by Jukka Kaarlehto, Improved Newsprint by Lars-Ove Staff, Directory Papers by Kari Saramäki, and Book Papers by Hannu Karppinen. The Fine Papers division will be headed by Jouko Taukojärvi, who will also be Chairman of the management team. The other members of the team are Lars Bengtsson (Vice Chairman of the management team, graphic papers), Hannu Alalauri (office papers), Stig Johansson (financial control), Jukka Kilpeläinen (business planning) and Seppo Rantakari (human resources). Seppo Rantakari's office will be in Oulu for the time being. Sampo Antti has been appointed Managing Director of Fortek Oy. Jouko Taukojärvi will also be in charge of Tervakoski Oy, where Reino Panula will continue as Managing Director. The Packaging Boards division will be headed by Pekka Laaksonen. Niilo Pöyhönen will be in charge of the Paperboards business unit. His deputy will be Ragnar Törner. Niilo Pöyhönen will be based in Imatra and Ragnar Törner in Skoghall. The unit's mills are in Imatra, Karhula and Skoghall. Torbjörn Pettersson will be in charge of the Cartonboards business unit. He will be based in Karlstad. The unit's mills are in Baienfurt, Castellbisbal, Fors, Ingerois, Mölndal, Newton Kyme and Pankakoski. The Containerboards & Kraft Papers business unit will be headed by Pekka Suursalmi, who will be based in Heinola. His deputy will be Torbjörn Joghed, based in Gruvön. The unit's mills are at Gruvön and Heinola. Eurocan sales are also part of the unit. Markku Pentikäinen will continue as Managing Director of Pakenso Oy and Pekka Harkki as Managing Director of Corenso United Oy Ltd. Markku Pentikäinen and Pekka Harkki will be based in Lahti. Jyri-Pekka Kinnunen will be in charge of the division's financial control, information technology and investments. He will be based in Imatra. Pekka Laaksonen will also be in charge of Laminating Papers Ltd., where Pentti Huhta will continue as Managing Director. Pentti Huhta will be based in Kotka. Arno Pelkonen will head the Sawn Products division. The management team consists of Gerald Schweighofer and Birger Lövgren (business development and sales coordination), Jouni Seppälä and Peter Kickinger (financial control), Markku Nieminen (technology) and the heads of the business units: Elisabet Salander Björklund, based in Falun (Nordic Redwood, production plants: Ala, Honkalahti, Linghed, Uimaharju and Veitsiluoto as well as Kittilä Wood and Koski Timber); Pekka Hukkanen, based in Tolkkinen (Nordic Whitewood, plants: Gruvön, Kitee, Kopparfors, Kotka, Tolkkinen and Varkaus); and Georg Erlacher (Central European Timber, plants: Brand, Bad St Leonhard, Sollenau, Ybbs, Plana and Zdirec). The division's trading and distribution operations are handled by Puumerkki Oy, Enso Bois S.A., Stora Timber Benelux, Woodpax Ltd, Enso International Softwoods and Holzhandel Schweighofer. Tiina Kauppi will be in charge of the division's human resources and Seppo Vainio of TQM. Head of the Pulp division will be Bert Östlund. Marketing and sales will be the responsibility of Simo Pesola. Jorma Kangas will be responsible for technology, Jan Moritz for human resources and communications, and Veli-Matti Tahvanainen for financial control. Per Malmström will be mill manager for Skutskär and Karl-Gösta Johansson for Norrsundet. Francisco Silva Gomes will be Managing Director of Celbi and Markku Halonen of Enocell and Kemijärven Sellu. The Merchants division will be headed by Sven Rosman. Peter Kullberg will be responsible for the division's financial control, Simon Hellmuth for information technology, and Mats Nordlander for marketing and supply. Human resources is vacant. The Asia/Pacific division will be headed by Seppo Hietanen. Reporting to him will be Eero Palokangas and Hans Swartling (financial control). STORA ENSO's staff units The following persons will report to Esko Mäkeläinen (accounting and legal affairs): Veli-Jussi Potka (financial accounting and reporting), Bo Eriksson (investment reports and productivity reporting), Karin Lagerkvist (taxes), Jyrki Kurkinen (legal affairs), Lennart Edström (insurance) and Seppo Schildt (internal auditing). Reporting to Ingvar Petersson (corporate finance and information technology) will be Erkki Nuutinen (information technology), his deputy Lars Sundberg, and Karl Olof Ohlson (financing) with Risto Suuraho as deputy. Ingvar Petersson will also be responsible for Base Resources, and reporting to him in this capacity will be Johan Lindman (Stora Enso Forest Sweden), Voitto Pölkki (Stora Enso Forest Finland), Timo Koivuniemi (Stora Enso Energy Finland) and Christer Sjölin (Stora Enso Energy Sweden). Reporting to Kimmo Kalela (corporate strategy and business development) will be Magnus Diesen (long-range planning, investments, M&As and business intelligence, and global fiber management), Sven von Holst (corporate marketing and sales), and Heikki Rissanen (Managing Director of Enso Forest Development Oy Ltd.). Reporting to Kari Vainio (communications and investor relations) will be Mikael Simelius (market communications), Christer Hårrskog (internal communications), Kjell Andersson (special events), Maija Harsu (investor relations), Juha Mäkinen (environmental communications) and Eeva Oehlandt (financial communications). Reporting to Yngve Stade (corporate support) will be Bengt Johansson (purchasing and logistics), Per G Broman (environmental services and policies) and his deputy Lars Salovius, Leif Wiklund (technical support) and Ilkka Kartovaara (research and development). In charge of Human Resources are Christer Ågren and his deputy Aulis Ansaharju (human resources development). Also reporting to Christer Ågren will be Karin Eliasson (organizational development and projects), Paavo Jäppinen (employee well-being, occupational health and safety), Matti Kostet (employee relations), Raimo Tulonen (compensation and benefits) and Liisa Sihvo (TQM). The next step will be to establish the organization within divisions and Group staffs/Group functions. This is the responsibility of each unit and the goal is to have the organization in place on January 1, 1999. Regarding the sales organization, we plan to come back with information next week. For further information, please contact: -Björn Hägglund, President and CEO, STORA. Tel: +46 23 78 27 85 -Christer Ågren, Senior Vice President, Human Resources, STORA. Tel: +46 70 655 66 01 -Kimmo Kalela, Executive Vice President, Enso Oyj. Tel: +358 2046 21216 -Kari Vainio, Senior Vice President, Communications, Enso Oyj. Tel: +358 2046 21393 See also www.stora.se ------------------------------------------------------------ Please visit http://www.bit.se for further information The following files are available for download: http://www.bit.se/bitonline/1998/11/05/19981105BIT00040/bit0001.pdf http://www.bit.se/bitonline/1998/11/05/19981105BIT00040/bit0002.doc