Stora Enso Oyj - Company Announcement

Stora Enso Renewable Packaging improves its operational cost efficiency and plans permanent closure of its converting unit at Páty in Hungary

Helsinki, Finland, 2012-04-05 08:00 CEST (GLOBE NEWSWIRE) -- STORA ENSO OYJ
STOCK EXCHANGE RELEASE 5 April 2012 at 9.00 EET 

Stora Enso Renewable Packaging plans to improve competitiveness and respond to
customer needs through restructuring its converting operations at Páty in
Hungary and efficiency measures in the consumer board mill at Barcelona in
Spain. 

“Demand for corrugated board consumer packaging has significantly weakened in
Hungary, so we plan to centralise our operations in Hungary to Komarom Mill and
close down Páty Mill. As a part of the plans, Komarom Mill would be enhanced
with asset transfers and recruitment so it can better meet customer and market
needs. The efficiency measures planned in Barcelona are intended to improve the
mill's profitability. The plans announced today, in combination with earlier
announcements, would improve Renewable Packaging's cost competitiveness,” says
Mats Nordlander, EVP, Renewable Packaging. 

According to the plans, converting operations at Páty Mill in Hungary would be
permanently closed down by the end of the third quarter of 2012. The planned
closure would affect 79 employees at Páty. The proposed restructuring measures
would reduce the number of employees at Barcelona in Spain by 15. No decisions
will be taken until after the local co-determination negotiations have
concluded. Stora Enso would make every effort in co-operation with local
communities to help the affected personnel find new employment opportunities,
and all job openings in other Stora Enso units would be available to those
affected. 

These restructuring measure plans, together with ongoing efficiency plans at
Skoghall and Fors mills in Sweden and at Imatra in Finland, would reduce annual
costs by approximately EUR 7 million, starting gradually from the fourth
quarter of 2012 onwards. Stora Enso will record a restructuring provision and a
fixed asset write-down as non-recurring items of approximately EUR 9 million
related to the restructuring plans in the Renewable Packaging Business Area in
the first quarter 2012 operating profit. 

For further information, please contact:
Mats Nordlander, EVP, Renewable Packaging, tel. +46 1046 72703
Ulla Paajanen-Sainio, SVP, Investor Relations, tel. +358 2046 21242
Sanna Lahti, SVP, Global Communications, tel. +358 2046 21251

www.storaenso.com
www.storaenso.com/investors

Stora Enso is the global rethinker of the paper, biomaterials, wood product and
packaging industry. We always rethink the old and expand to the new to offer
our customers innovative solutions based on renewable materials. Stora Enso
employs some 30 000 people worldwide, and our sales in 2011 amounted to EUR
11.0 billion. Stora Enso shares are listed on NASDAQ OMX Helsinki (STEAV,
STERV) and Stockholm (STE A, STE R). In addition, the shares are traded in the
USA as ADRs (SEOAY) in the International OTCQX over-the-counter market. 

STORA ENSO OYJ