Stora Enso Renewable Packaging is set to restructure its converting operations at Páty in Hungary and plans for efficiency measures in the consumer board mill at Barcelona, Spain to address the customer needs.
By the end of the third quarter of 2012, the converting operations at Hungary's Páty Mill would be permanently closed down and the measures planned in Barcelona are intended to improve the mill's profitability.
Stora Enso Renewable Packaging EVP Mats Nordlander said the company will centralize its Hungary operations to Komarom Mill and close down Páty Mill as the demand for corrugated board consumer packaging has significantly weakened in Hungary.
Stora Enso will improve the Komarom Mill with asset transfers, as part of the plans.
"The plans announced today, in combination with earlier announcements, would improve Renewable Packaging's cost competitiveness," Nordlander said.
According to Stora Enso, proposed together with ongoing efficiency plans at Skoghall and Fors mills in Sweden and at Imatra in Finland, the measures are expected to reduce annual costs by about €7m, starting gradually from 2012 fourth quarter onwards.
The company expects a restructuring cost and a fixed asset write-down as non-recurring items of about €9m related to the closure of the Hungary mill during the first quarter of 2012 operating profit.
