Stora Enso expects 380 mln eur of write-downs in Q4, reduces capacity, cuts jobs |
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Thu, 25 Oct 2007 08:17
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HELSINKI (Thomson Financial) - Stora Enso said it anticipates approximately 380 mln eur, of provisions and fixed asset write-downs as non-recurring items in its financial results for the fourth quarter of 2007 as it announced capacity and job cuts.This will include a cash impact of 160 mln eur, with an annual cost improvement of 140-160 mln eur, with full impact in 2009.The group said it will close down Summa magazine paper mill permanently and one magazine paper machine at Anjala Mill, and the pulp mills at Kemijarvi in Finland and Norrsundet in Sweden as a response to 'dramatic cost increases and safeguard long-term profitability'.The group also said it is planning to divest its laminating paper business and the special coated magazine paper operations in Kotka, Finland.'The sawmilling operations at Kotka could also be sold if a satisfactory offer is received,' Stora added.About 1,400 jobs will be axed, 1,100 jobs in Finland and around 300 in Sweden plus another 300 personnel in the group's administrative functions and shared services in Finland, Sweden, the UK and Germany.The company's annual capacity will be will reduced by 505,000 tonnes of paper and 550,000 tonnes of pulp.azer.sawiris@thomson.comafs/jlcCOPYRIGHTCopyright Thomson Financial News Limited 2007. All rights reserved.The copying, republication or redistribution of Thomson Financial News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Financial News.
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