The scheme is part of an extension of the Finnish-Swedish producers profit enhancement programme announced last year (PrintWeek, 30 August 2002).

Chief financial officer Esko Mkelinen said the firm had continued to suffer from increased competition from cheaper imports, higher energy costs and high production and labour costs.

North America was feeling the impact of cheaper imports from Asia and parts of Europe, as well as tough local competition, he added.

Sales prices for paper products in North America are at historically low levels.

As part of the plan, two paper machines at Storas Stevens Point and Biron mills in Wisconsin were shut down on 1 September.

The closures have taken 94,000 tonnes of annual capacity out of the market and affected 60 positions.

Stora Enso will take a non-recurring pre-tax restructuring charge of 15m during Q3.

Despite the cuts, Mkelinen said Stora Enso was seeing signs of improved volumes in advertising.

Story by Andy Scott