The firm expects that the closure of the line manufacturing uncoated mechanical grades will lower the site’s annual capacity by 250,000 tonnes and sales by approximately €100m
The Anjalankoski site in Finland. (Credit: STORA ENSO OYJ)
Stora Enso has unveiled its plans to combine its book paper production and permanently shut down one of its two paper machines at the company’s Anjalankoski site in Finland.
The planned closure is anticipated to take place during the fourth quarter of 2023 and will affect around 110 people.
Stora Enso, a Finnish pulp and paper firm, expects that the closure of the line manufacturing uncoated mechanical grades will lower the site’s annual capacity by 250,000 tonnes and sales by approximately €100m.
The Anjala site has the Ingerois packaging board production unit and Anjala paper production unit, which produces coated and uncoated book papers, improved newsprint on two machines and coated magazine paper.
To proceed with this strategy, the company will begin change negotiations for all employees at the integrated Anjalankoski facility, including the Anjala paper unit and the Ingerois board unit.
The decisions regarding the planned closure and employee reduction will be taken upon completion of the change negotiations, the pulp and paper firm said.
Stora Enso will also support the re-employment and training of the potentially impacted employees via working with the firm’s other locations, local community, and other stakeholders.
Stora Enso Packaging Materials division executive vice president Hannu Kasurinen said: “The decline in newsprint and publication paper demand has further accelerated and has also reached the previously more stable book paper market.
“Hence, to ensure the vitality of our book paper offering, we plan to focus all our efforts on the remaining Anjala production line and continue to serve our book paper customers with high-quality products.”
According to the firm, the combining of all its book paper production into one line is due to the ongoing weak paper demand and high input costs.
The shutdown of the one production line will not affect its operational earnings before interest and taxes (EBIT), Stora Enso claimed.
The Finnish firm will continue manufacturing its range of book paper grades with the remaining paper mill.
From the beginning of this year, the combined Anjalankoski plant is reported under the Packaging Materials division of Stora Enso.