Stora Enso implements first measure of its cost-cutting programme: reduces a shift at Ala sawmill

Stora Enso implements first measure of its cost-cutting programme: reduces a shift at Ala sawmill

In Sweden, Stora Enso has announced that 23 employees at its sawmill in Ala have received layoff notices. This stems from Stora Enso's plan to reduce costs by EUR 120mn in total.

Christer Rosén, on-site manager at the Ala sawmill, comments that there exist strong indications that things will be more insecure in the future, and that even though the sawmill sees future investment opportunities, there also exists a need to remove a shift from its components factory.

As previously reported by TIN, Stora Enso is implementing a cost-cutting programme of Euro 120 million targeting reductions in variable and fixed costs, as market uncertainty increases. Stora Enso estimates that some effects will be visible already during 2019 with full impact by the end of 2020.

As part of the programme, Stora Enso is planning to close paper machine 6 at Imatra Mills in Finland and to start co-determination negotiations at the mill related to this plan. With annual production capacity of 90,000 tonnes, PM6 is a small machine that has reached its end-of-life.

Moreover, Stora Enso is also planning to take performance improvement measures at the Imavere sawmill in Estonia. The plan includes actions to increase productivity and reduce costs.

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