HELSINKI, Finland, Feb. 19, 2014 (GLOBE NEWSWIRE) --
STORA ENSO OYJ STOCK EXCHANGE RELEASE 19 February 2014 at 14.00 EET
Stora Enso is planning to invest EUR 28 million in modernising and developing Murow Sawmill in Poland to increase its capacity and improve its competitiveness. Stora Enso also plans permanent closure of Sollenau Sawmill in Austria.
Stora Enso is rethinking its geographical mix as part of its transformation into a renewable materials company. The investment in Murow Sawmill will develop Stora Enso's wood product offering in the growing Central and Eastern European markets. Stora Enso will also utilise the platform in Poland to support growth in selected overseas markets.
"Stora Enso already has a well-established position in wood markets and is seen as a reliable partner. This investment in a strong growth market will enable us to serve existing and new customers even better in the future," says Karl-Henrik Sundstrom, Executive Vice President, Stora Enso Printing and Living.
The investment in Murow Sawmill will increase Stora Enso's consumption of Polish saw logs. The production capacity of the sawmill will rise to 140 000 m(3)/shift/year. Over the next five years, Stora Enso plans to increase the sawmill's output gradually to 400 000 m(3) per year.
The planned closure of Sollenau Sawmill will affect up to 125 employees and generate annual savings of up to EUR 7 million from the second quarter of 2014 onwards. Stora Enso is now initiating negotiations with employee representatives regarding the social plan. Sollenau Sawmill's customers will be served from Stora Enso's other mills in Austria and the Czech Republic. It is planned to shut down the saw line permanently at the end of the first quarter of 2014. Stora Enso also has beam and planer production lines at Sollenau that are planned to be permanently shut down in the second quarter of 2015. The sawmill has an annual production capacity of 400 000 m3.
Stora Enso will record a restructuring provision and fixed asset write-down as a non-recurring item related to the planned closure with a negative impact of approximately EUR 10 million on operating profit in its first quarter 2014 results.
|Annual Fixed Cost Decrease||Fixed Asset Write-downs||Provisions with Cash Impact||Planned Reduction in Personnel|
|Building and Living||EUR 7 million, as from Q2 2014||EUR 2 million||EUR 8 million||125|
For further information, please contact:
Karl-Henrik Sundstrom, EVP, Printing and Living, tel. +46 1046 71660
Ulla Paajanen-Sainio, SVP, Investor Relations, tel. +358 407638767
Ulrika Lilja, SVP, Communication, Printing and Living, tel. +46 72 221 92 28
Stora Enso is the global rethinker of the paper, biomaterials, wood products and packaging industry.We always rethink the old and expand to the new to offer our customers innovative solutions based on renewable materials. Stora Enso employs some 28 000 people worldwide, and our sales in 2013 amounted to EUR 10.5 billion. Stora Enso shares are listed on NASDAQ OMX Helsinki (STEAV, STERV) and Stockholm (STE A, STE R). In addition, the shares are traded in the USA as ADRs (SEOAY) in the International OTCQX over-the-counter market.
STORA ENSO OYJ
Source: Stora Enso Oyj