Stora Enso Oyj Stock Exchange Release 23 September 2003 at 12:30 GMT
Stora Enso has launched a restructuring programme at its Publication Paper mill at Corbehem, France to secure the site's long-term competitiveness in continuing depressed market conditions.
The programme, which will be implemented in stages during 2003-06, has been agreed with the workers' council representatives and has three objectives:
(1) a major reorganisation of the whole mill, including a decrease of some 160-170 employees in the headcount by 2006, the majority of the decrease occurring before the end of 2004. The mill currently employs about 900 people;
(2) a variable-cost reduction plan to improve significantly the productivity and efficiency of assets;
(3) investment in paper machine 5, raising its annual capacity by 55 000 tonnes to 305 000 tonnes of light-weight coated magazine paper (LWC) in 2004, as already announced in December 2002.
A provision of EUR 15.3 million for redundancy payments and other costs related to this restructuring programme will be entered as a non-recurring item in the results for the third quarter of 2003.
For further information, please contact
Bernd Rettig, Senior Executive Vice President, Stora Enso Publication Paper, tel. +49 211 581 2310
Heinz Felder, Managing Director, Stora Enso Publication Paper, Corbehem Mill, tel. +33 3 27 92 3112
Kari Vainio, Executive Vice President, Corporate Communications, tel. +44 7799 348 197
