Stora Enso shuts down its SC paper machine in Sweden due to low demand

Stora Enso announced that it planned to permanently shut down paper machine 8 (PM8) at Kvarnsveden Mill in Sweden due to structural weakening of magazine paper demand in Europe. Co-determination negotiations with employees at the mill are still ongoing, but PM8 was permanently shut down on June 21, 2017. The number of people affected by the reorganization of the mill and shutdown will be determined during Q3 2017.

According to the announcement, PM8 had an annual capacity of 100kt of super-calendered uncoated magazine paper (SC).  The closure of PM8 at Kvarnsveden Mill will not impact Stora Enso’s SC paper offering. In Europe, Stora Enso continues to produce SC paper at Kvarnsveden Mill PM12 as well at Maxau Mill in Germany and Langerbrugge Mill in Belgium. The group also serves its SC customers from Dawang Mill in China.

Production at Kvarnsveden Mill will continue on two lines, PM10 for improved newsprint paper and PM12 for SC papers.

In 1Q2017 Stora Enso reported 2.1% increase of sales.

Earlier Stora Enso repurchased notes from 2018 and 2019 bonds.

About Stora Enso:

The company is the global company operating in segments of the paper, biomaterials, wood products and packaging industry. The company has annual production capacity of 5.4 million tonnes of chemical pulp, 11.7 million tonnes of paper and board, 1.3 billion square metres of corrugated packaging and 5.6 million cubic metres of sawn wood products, including 2.9 million cubic metres of value-added products. Its sales in 2015 totaled EUR 10 billion.The Group has some 26 000 employees in more than 35 countries worldwide. It is a publicly traded company listed in Helsinki and Stockholm.

Source: Woodbizforum