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2017-02-16

Stora Enso Oyj: Stora Enso plans to shut down one SC paper machine at Kvarnsveden Mill in Sweden

STORA ENSO OYJ INVESTOR NEWS 16 February 2017 at 10.00 EET

Stora Enso will start co-determination negotiations with employees at
its Kvarnsveden Mill in Sweden regarding a plan to reorganise the
mill, including a permanent closure of paper machine (PM) 8. The
planned actions would affect a maximum of 140 employees. The paper
machine has an annual capacity of 100 000 tonnes of super-calendered
uncoated magazine paper (SC) and it is planned to be shut down by the
end of the second quarter of 2017.

The plan would result in annual cost savings of EUR 12 million. Stora
Enso will book restructuring charges of approximately EUR 17 million
as an item affecting comparability (IAC) in its Q1/2017 results, of
which about EUR 14 million will be cash costs. The planned closure
would not have material impact on Stora Enso's sales or operational
EBIT.

"We plan to reorganise Kvarnsveden Mill to ensure its competitiveness
in the structurally declining paper market. This plan includes the
permanent shutdown of PM8, which, due to its small size and technical
age, is unfortunately no longer competitive in the current market
conditions. We appreciate the efforts taken by the employees, and
regret that this plan would be necessary to support the
competitiveness of Kvarnsveden Mill going forward," says Kati ter
Horst, EVP Paper division.

The closure of PM8 at Kvarnsveden Mill would not impact Stora Enso's
SC paper offering. In Europe, Stora Enso continues to produce SC
paper at Kvarnsveden Mill PM12 as well at Maxau Mill in Germany and
Langerbrugge Mill in Belgium. The group also serves its SC customers
from Dawang Mill in China.

No decisions regarding the planned reorganisation or employee impact
will be taken until the co-determination negotiations have been
concluded. Production at Kvarnsveden Mill would continue on two
lines, PM10 for improved newsprint paper and PM12 for SC papers.

For further information, please contact:
Ulrika Lilja, EVP, Communications, tel. +46 72 221 9228
Liisa Nyyssönen, SVP Communications, Paper division, tel. +358 40 544
3491

Investor enquiries:
Ulla Paajanen-Sainio, SVP, Investor Relations, tel. +358 40 763 8767
Stora Enso is a leading provider of renewable solutions in packaging,
biomaterials, wooden constructions and paper on global markets. Our
aim is to replace fossil based materials by innovating and developing
new products and services based on wood and other renewable
materials. We employ some 25 000 people in more than 35 countries,
and our sales in 2016 were EUR 9.8 billion. Stora Enso shares are
listed on Nasdaq Helsinki (STEAV, STERV) and Nasdaq Stockholm (STE A,
STE R). In addition, the shares are traded in the USA as ADRs
(SEOAY). storaenso.com (http://www.storaenso.com/)

For further information, please contact:
Ulrika Lilja
EVP, Communications
tel. +46 72 221 9228
Liisa Nyyssönen
SVP Communications, Paper division
tel. +358 40 544 3491

Investor enquiries:
Ulla Paajanen-Sainio
SVP, Investor Relations
tel. +358 40 763 8767

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http://news.cision.com/stora-enso-oyj/r/stora-enso-plans-to-shut-down-on...

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