Stora Enso Oyj - Company Announcement

Stora Enso is planning to close down its Sauga Sawmill in Estonia

Stora Enso is planning to close down Sauga Sawmill in Estonia in June
2007, owing to a continuing shortage of raw material, resulting in
higher costs and unprofitable operations. The closure will not have a
material impact on Stora Enso's annual sales, but it is expected to
have a slightly positive impact on the Group's full year 2007
operating profit. The Company will record a write-down and
restructuring provision totalling about EUR 12 million as
non-recurring items in the first quarter of 2007.

Sauga Sawmill has an annual technical production capacity of 130 000
m3 of sawn wood, of which 90 000 m3 can be further processed. It is
planned to utilise some of Sauga Sawmill's machinery at Stora Enso's
other sawmills, to the extent feasible."Stora Enso's production and sales of sawn goods in the Baltic States
are expected to remain essentially unchanged after the closure of
Sauga Sawmill, as customers will be supplied from Stora Enso's other
sawmills. Sauga Sawmill has 107 employees and Stora Enso Timber is
looking at various opportunities for internal redeployment to for
example Paikuse, Imavere and Näpi sawmills and to Viljandi further
processing mill. Stora Enso Timber will be able to offer
approximately 30 positions. Outplacement to other forest products
companies in the Pärnu area and financing of retraining to take up
employment outside the forest products industry are also being
considered" says Peter Kickinger, Executive Vice President, Stora
Enso Timber.

For further information, please contact:
Hannu Ryöppönen, CFO, tel.+44 20 7016 3114
Peter Kickinger, EVP, Stora Enso Timber, tel. +43 1 269 7460 1375
Kari Vanio, Executive Vice President, Corporate Communications, tel.
+44 7799 348 197
Keith B Russell, Senior Vice President, Investor Relations, tel.
+44 7775 788659
Ulla Paajanen-Sainio, VP, Investor Relations and Financial
Communications, tel. +358 2046 21242

www.storaenso.com
www.storaenso.com/timber

STORA ENSO OYJ


p.p.      Leena Bergqvist            Jukka Marttila


Stora Enso Timber provides customer-focused solutions to the
construction and joinery industries and the wood products trade
worldwide. Stora Enso Timber's annual net sales are EUR 1.7 billion
and the total annual production capacity is 7.7 million m3 of sawn
wood products, including 3.4 million m3 of value-added products.
Stora Enso Timber employs 5 000 people in 29 mills and in its sales
and distribution companies throughout the world.