Finland-based pulp and paper manufacturer Stora Enso is planning to consolidate its corrugated packaging manufacturing in Finland to its Lahti facility.
The consolidation plan is part of the company’s plan to improve profitability and competitiveness by creating a centre of excellence for corrugated packaging at the Lahti plant.
As part of this effort, Stora Enso will invest approximately €19m ($17.9m) in new machinery including new corrugators and supporting infrastructure in Lahti.
The company plans to commence the proposed project in November 2016 and complete it by the end of the first quarter 2018.
Stora Enso senior vice president and corrugated Nordics Division Packaging Solutions head Peter Torstensson said: “The plan to potentially consolidate our corrugated operations in Finland is largely driven by the need to improve profitability and strengthen our competitive edge.
“In addition to the planned investment, our strong infrastructure in Lahti would provide us with a world-class asset base to better serve our customers.”
The consolidation plan will also lead to the permanent closure of the company’s Heinola corrugated plant while its packaging manufacturing will be transferred to the Lahti plant. It will also affect 60 jobs at the two facilities.
Stora said that it would commence co-determination negotiations within Lahti and Heinola corrugated plants.
Additionally, corrugated packaging production at the Kristiinankaupunki plant and operations of Heinola Fluting mill for containerboard will not be affected with the new plan.
Stora Enso is a provider of renewable solutions in packaging, biomaterials, wooden constructions and paper on global markets.
