Stora Enso could make up to 500 temporary layoffs at its Oulu paper mill in Finland as it looks to reduce production in response to weak market conditions for woodfree papers. The paper and wood products group said it is planning to start co-determination negotiations on the temporary layoffs, which could last for up to 90 days during the first half of 2019 and would affect the entire workforce at the Oulu paper mill but would not impact personnel at the adjacent Oulu pulp mill. In a statement the company said Oulu’s market demand for coated fine papers has deteriorated while, at the same time, the prices of the main raw materials for paper production have continued to increase. Click read more below for additional detail.
In 3Q2019, the net sales of Coated Woodfree were €143 million vs €180 million in 3Q2018, a decrease of €37 million or -20%. The Ebitda at €4 million was lower than in 3Q2018 (€8 million). This decrease was mainly due to a reduction in sales volume and an increase in distribution costs, partly offset by an increase of net sales price and reductions in variable production costs and fixed expenses.
In 3Q2019, the net sales of Specialties were €114 million vs €122 million in 3Q2018, a decrease of €8 million or -7%. The Ebitda at €8 million was lower than in 3Q2018 (€17 million). This decrease was mainly due to reductions in sales volume and net sales price, an increase in variable production costs, partly offset by decreases in distribution costs and fixed expenses.
For the third quarter ended 30 September 2019, Lecta had revenue of €316.5 million versus €366.7 million in the third quarter ended 30 September 2018, a decrease of €50.1 million or -13.7%.
EBITDA decreased by €12.3 million, or -47%, from €26.2 million in 3Q2018 to €13.9 million in 3Q2019. This decrease was the result of lower sales of paper in volume, higher outsourcing, and overhead costs, partly offset by lower net energy cost, costs of packaging, distribution, selling variable, labor, maintenance, and production consumables, in a context of higher unit gross margin.
much more detail at: https://cmspro.lecta.com/DownloadAreaDocuments/Lecta_Group_Management_report_30_09_2019.pdf