Stora Enso Restructures to Drop $63.6 Million in Costs
Plan includes 110 staff cuts, $23.8 million investment.
Stora Enso has announced a restructuring plan that aims to cut costs in its annual magazine paper operation by about $63.6 million by third quarter 2013, with the goal of improving efficiency and productivity.
The plan includes the elimination of 110 staff positions as well as investments totaling $23.8 million in its Corbehem, Veitsiluoto and Kabel mills, in France, Finland and Germany respectively.
“The operating environment in coated magazine paper has remained challenging,” says Juha Vanhainen, EVP of Stora Enso’s printing and reading business division. “The planned streamlining will enable us to be better meet customer and market expectations, and improve profitability.”
Last month, Catalyst Paper announced it would proceed with a recapitalization plan to eliminate $315.4 million of its debt. Market giants NewPage and Verso have been struggling with their own financial troubles, as rumors circulated last year of a possible merger between them.