20. March 2019 | Packaging technology

Stora Enso plans to focus on packaging board production

The Finnish-Swedish forest and wood company Stora Enso starts co-determination negotiations with employees at Oulu Mill in Finland. According to the company, this follows a plan to convert the paper mill into a packaging board production plant. Furthermore, paper machine 6 and a sheeting plant reportedly are to be closed. These planned changes could result in a reduction of a maximum of 400 employees at the mill.

The decision on the potential conversion reportedly will be made by the Company’s Board of Directors during the first half of 2019 after the co-determination process has been completed. The negotiations are expected to take at least six weeks. The potential changes affecting personnel would take place by the end of year 2020.

The Details

In June 2018, the company announced that it would evaluate development opportunities for the Oulu Mill, because current coated wood-free paper production is facing challenges with market demand and profitability. Based on the technical and financial aspects of the feasibility study results, the proposed plan is to convert paper machine 7 into kraftliner production for packaging board and close down paper machine 6 and the sheeting plant by the end of 2020 at the latest.

The potential investment, around 350 million euros would include a new kraftliner line with a capacity of 450,000 tonnes per year and the modification of the pulp mill and drying machine to produce unbleached brown pulp. Moreover, it would include investments to enhance environmental performance.

edited by Thobias Quaß

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