- Planned closures include Sunila pulp unit, De Hoop containerboard site, Ostrołęka containerboard line, and Näpi sawmill, affecting 1,150 jobs.
- Annual sales expected to decrease by EUR 380 million, with operational EBIT improving by EUR 110 million.
- EUR 130 million non-cash asset impairments and EUR 60 million layoff costs to be recorded in Q2/2023 results.
- Sunila site closure affects 250 employees and reduces annual market pulp capacity by 13%.
Restructuring Plans
Stora Enso is planning significant restructuring actions to enhance long-term competitiveness and profitability. These actions include closing several production sites and reducing approximately 1,150 jobs. The restructuring aims to focus capital allocation in strategic growth markets and drive a decentralized operating model for increased customer centricity, business focus, and cost reductions.
Site Closures
The company plans to permanently close the Sunila pulp production unit in Finland, the De Hoop containerboard site in the Netherlands, one containerboard line at the Ostrołęka site in Poland, and the Näpi sawmill in Estonia. These closures will target a reduction of approximately 600 employees. Additionally, change negotiations will be initiated for a planned reduction of 300 office employees within Group functions.
Financial Impact
The planned restructuring actions are expected to decrease annual sales by approximately EUR 380 million, based on 2022 figures. However, operational EBIT is anticipated to improve by approximately EUR 110 million annually. Stora Enso will record approximately EUR 130 million in non-cash asset impairments related to the planned closures and approximately EUR 60 million in costs for potential layoffs and restructuring expenses in its Q2/2023 results.
Sunila Pulp Production
The Sunila pulp production unit in Finland, with an annual capacity of 375,000 tonnes of long-fiber pulp, is planned to be closed due to increased competition for pulp wood and higher wood costs. This closure will affect approximately 250 employees and decrease Stora Enso’s annual market pulp capacity by 13%. Despite this, the Group’s strategy for developing biomaterial innovations remains unchanged, with ongoing projects at other sites.
Packaging Materials Division
Due to overcapacity in the European containerboard market, Stora Enso proposes to close both production lines at the De Hoop site in the Netherlands and one production line at the Ostrołęka site in Poland. These closures aim to improve market balance and benefit supply from larger, more cost-efficient production sites. The Packaging Materials division has also reduced approximately 250 positions in its management and support functions.
