HELSINKI, Finland, June 22, 2015 (GLOBE NEWSWIRE) -- Stora Enso plans to permanently shut down the Group's corrugated packaging converting unit in Chennai, India, due to unprofitability and a major decrease in local market demand.
The mill closure will involve negotiations with the local employees' union. The mill employs 350 people, who will receive compensation and other support including training, medical care and assistance in finding new employment.
The packaging unit in Chennai has been part of Stora Enso since July 2011, following the Group's acquisition of 51% of the shares in Inpac International in China. Today, Stora Enso Inpac offers fibre-based packaging solutions. Chennai Mill in India produces transport and consumer packaging made of corrugated board, for sale primarily in Chennai and Tamil Nadu region.
The total negative impact on Stora Enso's operating profit in the second quarter of 2015 will be approximately EUR 8 million, mainly related to a restructuring provision. Excluding this one-time impact, the closure will not have a material impact on Stora Enso's sales and operational EBIT.
For further information please contact:
Ulrika Lilja, EVP, Global Communications, tel. +46 72 221 92 28
Ulla Paajanen-Sainio, SVP, Investor Relations, tel. +358 2046 21242
Stora Enso is a leading provider of renewable solutions in packaging, biomaterials, wood and paper on global markets. Our aim is to replace non-renewable materials by innovating and developing new products and services based on wood and other renewable materials. We employ some 27 000 people in more than 35 countries, and our sales in 2014 were EUR 10.2 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) on the International OTCQX over-the-counter market. www.storaenso.com
STORA ENSO OYJ
Source:Stora Enso Oyj