HELSINKI, Finland, April 23, 2013 (GLOBE NEWSWIRE) -- STORA ENSO OYJ STOCK EXCHANGE RELEASE 23 April 2013 at 12.59 EET
Stora Enso plans to launch a Group streamlining and structure simplification project intended to achieve annual fixed cost savings of EUR 200 million, including the earlier announced EUR 30 million in the Building and Living Business Area, with the full impact starting from the second quarter of 2014. The project is planned to include all Business Areas and corporate functions. In addition to reducing costs, the planned project would reduce interdependencies between businesses and enable a stronger focus on growth in value creating businesses.
"We plan to clearly and decisively further reduce our fixed costs to revenue ratio not only to adjust to the decline in market demand, but also to clearly add resilience against the cyclical and structural changes in our revenue. The reality is that our European driven printed media markets have shrunk more than 20% since 2008, and there is no reason to believe that the structural change of the past five years in Europe will slow down or change direction in the foreseeable future," says Stora Enso CEO Jouko Karvinen.
It is planned to change from four Business Areas to three Divisions by integrating the current Building and Living Business Area with the Printing and Reading Business Area in a new Division mainly focusing on mature businesses and geographies. The other two Divisions would be the existing Renewable Packaging and Biomaterials Business Areas, which would remain as they are and concentrate on growth markets and businesses, as well as innovation.
It is planned that the Divisions and corporate functions would undergo organisational streamlining. Further outsourcing alternatives in Group shared services and sale of non-core assets will be considered. As far as possible, it is planned to centralise functions in one location instead of several.
"The planned project is vitally important in supporting our transformation towards a value-creating renewable materials company focusing on growth markets. We start the plans from a position of relative strength and with a solid balance sheet and liquidity, thanks to our earlier actions. These plans, combined with our financial strength, will give us flexibility and agility to make future choices and achieve our strategy," says Jouko Karvinen.
The planned new Division combining the current Building and Living Business Area with the Printing and Reading Business Area would be led by Karl-Henrik Sundstrom, currently Chief Financial Officer of Stora Enso. The Company will immediately begin the process of recruiting a new CFO.
The leadership of the two other Divisions will remain as it is today, with Mats Nordlander heading Renewable Packaging and Juan Bueno heading Biomaterials.
The segment reporting will remain as before to give the markets continued transparency.
The plans announced concerning the Division structure would be in effect by 1 July 2013. All detailed plans are subject to the outcome of co-determination negotiations.
For further information, please contact:
Jouko Karvinen, CEO, tel. +358 2046 21410
Karl-Henrik Sundstrom, CFO, tel. +46 1046 71660
Lauri Peltola, EVP, Global Identity, tel. +358 2046 21380
Ulla Paajanen-Sainio, SVP, Investor Relations, tel. +358 2046 21242
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 2012 amounted to EUR 10.8 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