Corbehem
To improve efficiency and enhance asset quality in magazine paper, at its meeting on 20 December 2002 Stora Enso’s Board of Directors approved a plan to rebuild PM5 (paper machine 5) at the Corbehem Mill in northern France, which produces LWC paper for rotogravure printing.
The aim of the project, which is part of the already announced asset restructuring programme, is to exploit the potential of the rotogravure printing market, as there have been no significant investments in rotogravure printing grades lately.
In its present form, which dates from 1988, PM5 has limited potential for further quality development and meeting future market growth in rotogravure, estimated at 5% annually until 2006, according to CEPI (Confederation of European Paper Industries).
The rebuild of PM5 involves the wet end, the press section and the supercalenders. The annual capacity of the machine will be increased by 55 000 tonnes to 305 000 tonnes, which will not disturb the rotogravure printing grade market balance. The capital expenditure will be EUR 60 million. The project is scheduled to be completed in the beginning of 2004.
Nymölla
To enhance the quality and efficiency of MultiCopy cutsize production, Stora Enso will upgrade and modernise PM1 at the Nymölla Mill in southern Sweden. The aim of the investment is to develop the quality of MultiCopy office paper and maintain a leading market position in document printing papers. The project, which is part of the already announced office paper asset restructuring programme, is scheduled to be completed in the beginning of 2004. The capital expenditure will amount to EUR 23 million.
The investments at Corbehem and Nymölla are in line with Stora Enso’s policy that capital expenditure over the cycle be less than or equal to the amount of depreciation.
For further information, please contact:
Bernd Rettig, Senior Executive Vice President, Magazine Paper, tel. +49 211 581 2310
Jussi Huttunen, Senior Executive Vice President, Fine Paper, tel. +44 20 8432 1573
Kari Vainio, Executive Vice President, Corporate Communications,
tel. +44 20 8432 1551
www.storaenso.com/investors
www.storaenso.com/corbehem
www.storaenso.com/nymolla
Stora Enso Magazine Paper is the world’s second-largest producer of coated and uncoated magazine papers. The main markets are Europe and North America. The product area has an annual production capacity of 4.6 million tonnes. Magazine paper is used for magazines, printed advertising material, catalogues and direct marketing.
Stora Enso Fine Paper is the world’s second-largest producer of graphic papers and the sixth-largest producer of office papers. The main markets are Europe and North America. The product area has an annual production capacity of 3.8 million tonnes. Fine paper is used for document printing, commercial printing and high-quality books. Stora Enso’s main office paper production units at Nymölla and Veitsiluoto are profitable, and their products are well positioned in the market. They combine strong brands, continued product development and good customer service.
