Saturday, January 19, 2008

Stora Enso Announces Layoff Plans


Finnish forest products giant Stora Enso announced Thursday it will lay off 985 employees.

The number of layoffs is slightly less than initially forecast. Last October, the company said it would cut some 1,100 jobs. Stora Enso also confirmed it will close plants in Kemijärvi and Summa, and one machine at the Anjala paper mill.

Stora Enso said rising costs and the need to safeguard the company's future profitability are behind the job cuts.

The Kemijärvi plant will close in late April, while the Summa plant shuts down at the end of this month. The paper machine in Anjala will close in November.

Stora Enso also announced Thursday it will double the amount of funds set aside to help employees at the Kemijärvi and Summa plants find new jobs.

The Finnish government has also reserved 15 million euros to support the regions affected by the layoffs.

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