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Stora Enso intends to close spruce sawmill in Kitee

13.07.2019 − 

From next year Finnish Stora Enso intends to focus production of spruce lumber in Finland at the Varkaus location and also to increase cutting in Varkaus. According to a statement issued by the group on 27 June 2019, this measure is intended to improve the competitiveness of the Varkaus location as well as optimise synergies with the existing production facilities for LVL, pulp and cardboard at the site. According to Stora Enso, the consolidation plan is part of a profit protection programme to the value of €120m, aimed at achieving reductions in variable and fixed costs. Stora Enso will record restructuring-related costs and write-downs of €11m as items affecting comparability (IACs) for the planned closure of Kitee on the balance sheet for the second quarter of 2019. Approximately €5m of the provisions will have a cash impact. The group does not expect the closure to have any significant effects on turnover or the EBIT.

Production in the Kitee mill, in which some 260,000m³ lumber, 110,000m³ planed lumber and approximately 25,000t pellets are produced each year, is to be stopped gradually by the end of 2019. Negotiations with employee representatives will commence in August. A total of 85 full-time positions are affected by the closure.

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