Stora Enso's cost-cutting plans affect 560 staff

More than 560 staff will be affected as paper giant Stora Enso concludes co-determination negotiations at its Finnish-based Imatra, Varkaus and Veitsiluoto mills.

The Imatra mill's Board Machine One will permanently shut down by the end of 2009, as will the company's Corenso's Coreboard Machine at Varkaus by the end of this year.

The paper company said this is because of persistent profitability problems.

Its Polymer (PE) Coating Machine Two at Imatra will also be shut down in May 2009 and the PE Coating Machine at Karhula will be shut down by the end of 2010.

The total number of personnel will be reduced by 329 at Imatra and Karhula, by 136 at Varkaus and by 96 at Veitsiluoto.

Mats Nordlander, executive vice president of consumer board, said: "I'm happy that we have been able to conclude the co-determination negotiations in a constructive manner and consequently decided to invest in our assets to make us more competitive in the future."

Around 330 of the staff affected are currently estimated to have an offer of employment within Stora Enso or "other arrangements for their future".

In September, the company announced plans for permanent closures of assets with poor profitability. It warned that 1,700 staff would be affected by the permanent capacity reduction and restructuring plans.