Stora Enso to cut up to 400 jobs in Oulu paper mill

Forest product company, Stora Enso has started co-determination negotiations with employees at Oulu Mill in Finland regarding a plan to convert the paper mill into packaging board production and the closure of paper machine 6 and a sheeting plant.

The planned change could result in a reduction of a maximum of 400 employees at the mill, said an official press release on Monday.

The decision on the potential conversion will be made by the Stora Enso Board of Directors during the first half of 2019 after the co-determination process has been completed.

Stora Enso announced in June 2018 that it would evaluate development opportunities for the Oulu Mill, because current coated wood-free paper production is facing challenges with market demand and profitability.

The feasibility study focused on converting the mill into packaging board grades. Based on the technical and financial aspects of the feasibility study results, the proposed plan is to convert paper machine 7 into kraftliner production and close down paper machine 6 and the sheeting plant by the end of 2020 at the latest.

The capital expenditure for the potential investment is estimated to be approximately EUR 350 million during the years 2019–2021 instead of the EUR 700 million estimated in the initial feasibility study scope.

The entire personnel of Stora Enso Oulu Oy, approximately 600 people, falls within the scope of the negotiations, which will start on 25 March 2019.

In line with Finland’s co-determination law, the negotiations are based on the proposed conversion plan and include the reorganization of structures, functions, resources and job roles.

The negotiations are expected to take at least six weeks. The potential changes affecting personnel would take place by the end of year 2020.

No decisions regarding the planned conversion or redundancies will be taken until the co-determination negotiations have been concluded.