Finnish pulp and paper company Stora Enso has provided an update on the restructuring actions it has implemented to improve its long-term competitiveness and profitability.

As part of this move, the company decided to permanently close pulp production and lignin extraction at its Sunila site in Finland.

The site, which halted production since May, can produce 375,000 tonnes (t) of long-fibre and 50,000t of lignin annually.

Stora Enso confirmed that it will not ramp up production at the site, which will affect 240 employees.

The closure will not affect the pilot plant for bio-based battery material at the Sunila site.

During the third quarter, the company also permanently closed one of the four containerboard production lines at its Ostrołęka site in Poland.

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The affected line had an annual capacity of 120,000t of recycled containerboard. The decision will impact 50 employees locally.

In June 2023, Stora Enso completed change negotiations for the reduction of approximately 250 management and support function roles in the Packaging Materials division.

In addition, the company is planning to close the De Hoop containerboard site in the Netherlands, which has an annual capacity of 380,000t and employs 185 people.

Consultation with employee representation for the planned closure is currently undergoing and is expected to complete in the fourth quarter of fiscal 2023.

In addition, Stora Enso decided to permanently close its Näpi sawmill, which produces 50,000m³ of sawn timber, 180,000m³ of further processed wood products and 25,000t of pellets annually.

This closure will directly impact approximately 90 employees in Estonia.

The restructuring actions, announced on 15 June 2023, is expected to reduce the number of employees by approximately 1,150.

Stora Enso anticipates the completed and ongoing restructuring actions to decrease its annual sales by approximately €380m ($409.35m), based on the 2022 numbers.

The company reported sales to drop by 22% to €2.37bn ($2.63bn), in the second quarter of FY23, from €3.05bn in the prior year’s same quarter.