Stora Enso has decided to restart operations at Veitsiluoto Sawmill in Northern Finland in spring 2006. The mill has been idle and the personnel laid off temporarily since July 2005 owing to severe profitability problems. Veitsiluoto Sawmill has been on the Group's divestment list since October 2005.
The restart is expected to result in satisfactory profitability of the mill at lower production volume. The main changes in the operating environment of the mill that have enabled the restart are more favourable wood raw material costs and improved market prospects for Nordic redwood products, as well as locally agreed flexible working. The mill will start in one-shift operation with 28 personnel excluding contractors. The annual capacity in one-shift operation is 100 000 m3 (former annual capacity was 300 000 m3). In the longer term, the restart of Veitsiluoto Sawmill is expected to deliver better overall results for Stora Enso than the carefully explored possible divestment.
::: For further information: corporate.communications@storaenso.com
