Stora Enso Oyj - Company Announcement

Stora Enso concludes second phase of planning EUR 200 million streamlining and structure simplification programme announced on 23 April – estimated personnel reduction approximately 2 500

Helsinki, Finland, 2013-06-18 08:00 CEST (GLOBE NEWSWIRE) -- STORA ENSO OYJ
STOCK EXCHANGE RELEASE 18 June 2013 at 09.00 EET 

On 23 April 2013 Stora Enso announced new plans to simplify and streamline its
operations to focus its different businesses, simplify its operations and
enable greater focus on growth in value-creating businesses. The potential EUR
200 million annual Group fixed cost reduction from actual costs in year 2012 to
second quarter 2014 run rate will include the earlier announced EUR 30 million
streamlining of the Building and Living Business Area. All plans are subject to
co-determination negotiations in the local units. 

The EUR 200 million plans do not include any capacity reduction actions. In
addition to the EUR 200 million, the effect of previously announced cost and
capacity reduction actions between 2012 and the second quarter of 2014 will be
EUR 75 million per year. 

According to preliminary estimates, the plans could reduce the total number of
employees by approximately 2 500, depending on the outcome of the
co-determination negotiations and processes. The geographical split of the
planned personnel reduction is as follows: 

Finland                                                      650
Sweden                                                     750
Europe excluding Nordic countries              850
Outside Europe                                         250


The cost-efficiency and rightsizing actions are being planned by each Business
Area, Group Service and Function. The actions planned in the Business Areas
include identifying process efficiencies in production units and services, and
the potential to reduce and centralise mill administration tasks, and to
simplify organisation structures and reduce management layers in Business Area
administration. The various Business Areas have reached different stages of
their plans: for example, in the Building and Living Business Area the plans
have progressed well and most of the co-determination negotiations have already
been concluded and decisions taken. 

Group Services and Functions are rethinking their priorities, rightsizing and
simplifying structures. Some will go through further strategic assessment in
order to optimise the service level and approach. 

“This new round of streamlining is understandably very difficult for our
employees, who have already experienced several cost-saving programmes in the
recent past. However, we have to respond to weakness in the European economy,
structurally shrinking markets in some of our businesses and our poor
profitability. We must face reality, and then try to support the employees
affected by these plans in a responsible way. We have a strong track record in
restructuring operations. Delivering on our savings targets will be yet another
proof of our ability and agility to rightsize operations quickly to match
future needs,” says CEO Jouko Karvinen. 

The one-time costs will be recorded in accordance with Stora Enso practice and
accounted as non-recurring items mainly during the second and third quarters of
2013. 


For further information, please contact:
Jouko Karvinen, CEO, tel. +358 2046 21410
Kalle Sundström, CFO, tel. +46 1046 71660
Lauri Peltola, EVP, Global Identity, tel +358 2046 21380
Ulla Paajanen-Sainio, SVP, Investor Relations, tel. +358 2046 21242

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 2012 amounted to
EUR 10.8 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