Stora Enso, upon conversion of the Oulu Mill in 2020, intends to make organisational changes in the Paper division
Image: Stora Enso’s Oulu paper mill in Finland. Photo: courtesy of Stora Enso.
Finnish renewable materials manufacturer Stora Enso has closed the divestment of 60% equity stake in the Dawang Mill in China to its joint venture partner, Shandong Huatai Paper.
Located at Dongying in Shandong province in China, the mill is operated by joint venture Stora Enso Huatai (Shandong) Paper Company.
The mill has an annual production capacity of 140 000 tonnes of super-calendered (SC) magazine paper and other publication paper grades based on recovered fibre.
Stora Enso said that the transaction reduces its net debt will by approximately €22m and annual sales by approximately €60m.
Stora Enso exits from paper production business in China
With the completion of the deal, Stora Enso has exited from paper production business in China.
Separately, Stora Enso has announced plans to make organisational changes in the Paper division following the conversion of Oulu paper mill in Finland into packaging board mill at the end of 2020.
The proposed changes, however, is expected to result in a reduction of up to 135 jobs in the Paper division.
Stora Enso said that the organisational changes at the Paper division aim to improve competitiveness and ensure efficient customer service following the conversion of the Oulu Mill.
The firm expects the proposed changes to primarily affect commercial functions and operations support, and the new organisational set-up is planned for completion in the first quarter of 2021.
In order to ensure good customer service, the firm plans to undertake the transition to the new organisation will take place in phases.
As part of the conversion project, Stora Enso earlier announced its decision to invest approximately €350m (£308.5m) at the Oulu paper mill.
The plan includes converting paper machine 7 into high-quality virgin-fibre-based kraftliner production, as well as the closure of paper machine 6 and sheeting plant at the mill.
The current production capacity at the Oulu Mill is 1,080,000 tonnes of woodfree coated papers annually. Production is planned to be continued until the end of September 2020.