Paper Manufacturer Stora Enso to Reduce Newsprint and Paper Production in Finland

---

Español

Researched by Industrial Info Resources (Sugar Land, Texas)--Swedish-Finnish paper, packaging and forest company Stora Enso (OTC:SEOAY) (Helsinki, Finland) is planning to permanently cease the production of newsprint and directory paper at the company's mill in Varkaus, Finland, by the end of September.

Company officials say they were forced to make this decision due to the current economic crisis, which led to a decrease in the demand of paper and packaging products, resulting in overcapacity in the European market and in a collapse in prices. Approximately 175 people will be affected by this measure.

The manufacturing cutback of the mill involves halting the production of two newsprint machines, PM 2 and PM 4, which will decrease the company's newsprint and directory paper production by 290,000 tons per year. The machines already had been stopped temporarily in April of this year for about a month.

The Varkaus facility manufactures 219,000 tons of uncoated paper annually, using eco-pulp as raw material, and it produces standard and colored newsprint paper. Approximately 550 employees work at the plant.

Stora Enso has more than 85 facilities in 35 countries, and 29,000 employees worldwide. At present, the company's total paper and board annual capacity is 12.7 million tons and 6.9 million cubic meters of sawn wood products.

Industrial Info Resources (IIR) is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. IIR's quality-assurance philosophy, the Living Forward Reporting Principle™, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities.