Stora Enso initiates a plan to permanently close down pulp and paper production at Kvarnsveden and Veitsiluoto mills
Stora Enso will start co-determination negotiations with employees at its Kvarnsveden Mill in Sweden and Veitsiluoto Mill in Finland regarding a plan to permanently close down pulp and paper production at both mills. The planned closures would take place during the third quarter of 2021, and affect directly 670 people in Finland and 440 people in Sweden. Paper demand in Europe has declined for over a decade. This trend has further accelerated due to the pandemic, which has led to changes in consumer behaviour. As a consequence, there is a significant overcapacity in the European paper market, which has resulted in historically low price levels and challenged the cost-competitiveness of many paper mills. Both Kvarnsveden and Veitsiluoto mills are loss-making, and their profitability is expected to remain unsatisfactory also going forward. No decisions regarding the planned closures nor employee impact will be taken until the local co-determination negotiations have been concluded.