stora enso oyj-r shs (ENUR) Snapshot

Stora Enso Oyj planned to cut 11% of its 28,000-strong workforce as part of a savings plan. The 2,500 job cuts would affect Finland and Sweden. The company planned to trim 10% of its 6,500 workers in Finland while 750 positions were to be axed in neighbouring Sweden. In other parts of Europe, the company planned to cut 850 positions while 250 jobs were to be trimmed outside Europe.

Stora Enso announced that the company is investing approximately EUR 32 million in Skoghall Mill in Sweden. The investment primarily pertains to rebuilding of a fibre line in the sulphate pulp mill and its chemical recovery operations, thereby increasing the mill's pulp production capacity by 45,000 tones per year. The company announced that the investment will equip Skoghall Mill with new potential for increasing operational efficiency to enhance the competitiveness in the attractive packaging market. The project will begin immediately and is expected to be completed in October 2014. This investment is additional to the recent investment of approximately EUR 90 million in a new woodroom and woodyard for improved wood handling at the mill. The investment will enable Skoghall Mill to increase production volumes and improve its cost position.

Stora Enso and Packages Ltd. have completed the process of establishing a joint venture called Bulleh Shah Packaging (Private) Limited. Stora Enso's initial shareholding is 35% with a commitment to increase the shareholding at the agreed value to 50% at a later stage subject to certain conditions being met. The agreed value for 100% of the joint-venture company is approximately USD 108 million (EUR 83 million) on a cash and debt free basis. The cash consideration for the 35% shareholding amounted to approximately USD 39 million (EUR 30 million) in the second quarter of 2013. The joint venture will to a large extent provide packaging products to key local and international customers in the fast-growing Pakistani market.