Stora Enso Renewable Packaging plans to improve competitiveness and respond to customer needs through restructuring its converting operations at Páty in Hungary and efficiency measures in the consumer board mill at Barcelona in Spain.

“Demand for corrugated board consumer packaging has significantly weakened in Hungary, so we plan to centralise our operations in Hungary to Komarom Mill and close down Páty Mill. As a part of the plans, Komarom Mill would be enhanced with asset transfers and recruitment so it can better meet customer and market needs. The efficiency measures planned in Barcelona are intended to improve the mill’s profitability. The plans announced today, in combination with earlier announcements, would improve Renewable Packaging’s cost competitiveness,” says Mats Nordlander, EVP, Renewable Packaging.

According to the plans, converting operations at Páty Mill in Hungary would be permanently closed down by the end of the third quarter of 2012. The planned closure would affect 79 employees at Páty. The proposed restructuring measures would reduce the number of employees at Barcelona in Spain by 15. No decisions will be taken until after the local co-determination negotiations have concluded.