Stora Enso Oyj - Company Announcement

Stora Enso enhances efficiency in Central European sawmills

Helsinki, Finland, 2014-02-19 13:00 CET (GLOBE NEWSWIRE) -- STORA ENSO OYJ
STOCK EXCHANGE RELEASE 19 February 2014 at 14.00 EET 

Stora Enso is planning to invest EUR 28 million in modernising and developing
Murow Sawmill in Poland to increase its capacity and improve its
competitiveness. Stora Enso also plans permanent closure of Sollenau Sawmill in
Austria. 

Stora Enso is rethinking its geographical mix as part of its transformation
into a renewable materials company. The investment in Murow Sawmill will
develop Stora Enso's wood product offering in the growing Central and Eastern
European markets. Stora Enso will also utilise the platform in Poland to
support growth in selected overseas markets. 

“Stora Enso already has a well-established position in wood markets and is seen
as a reliable partner. This investment in a strong growth market will enable us
to serve existing and new customers even better in the future,” says
Karl-Henrik Sundström, Executive Vice President, Stora Enso Printing and
Living. 

The investment in Murow Sawmill will increase Stora Enso's consumption of
Polish saw logs. The production capacity of the sawmill will rise to 140 000
m³/shift/year. Over the next five years, Stora Enso plans to increase the
sawmill's output gradually to 400 000 m³ per year. 

The planned closure of Sollenau Sawmill will affect up to 125 employees and
generate annual savings of up to EUR 7 million from the second quarter of 2014
onwards. Stora Enso is now initiating negotiations with employee
representatives regarding the social plan. Sollenau Sawmill's customers will be
served from Stora Enso's other mills in Austria and the Czech Republic. It is
planned to shut down the saw line permanently at the end of the first quarter
of 2014. Stora Enso also has beam and planer production lines at Sollenau that
are planned to be permanently shut down in the second quarter of 2015. The
sawmill has an annual production capacity of 400 000 m3. 


Stora Enso will record a restructuring provision and fixed asset write-down as
a non-recurring item related to the planned closure with a negative impact of
approximately EUR 10 million on operating profit in its first quarter 2014
results. 



Segment          Annual Fixed    Fixed Asset   Provisions with           Planned
                Cost Decrease    Write-downs       Cash Impact      Reduction in
                                                                       Personnel
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Building       EUR 7 million,  EUR 2 million     EUR 8 million               125
 and Living   as from Q2 2014                                                   





For further information, please contact:

Karl-Henrik Sundström, EVP, Printing and Living, tel. +46 1046 71660
Ulla Paajanen-Sainio, SVP, Investor Relations, tel. +358 407638767
Ulrika Lilja, SVP, Communication, Printing and Living, tel. +46 72 221 92 28


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


Stora Enso is the global rethinker of the paper, biomaterials, wood products
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 28 000 people worldwide, and our sales in 2013 amounted to
EUR 10.5 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