Stora Enso completes negotiations at Hylte Mill

Co-determination for closure to impact 140 people

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Stora enso
Stora Enso's Hylte paper mill in Sweden

Stora Enso has completed the co-determination negotiations concerning the closure of one standard newsprint paper machine (PM3) and the deinking plant at Stora Enso’s Hylte Mill in Sweden. The maximum personnel impact is 140 people.

As a result of the co-determination negotiations, PM3 will be shut down by the end of 2020 and the DIP latest in Q2 2021. Negotiations on organizational restructuring, including the risk analysis, have started. According to our earlier article, the closure could result in total cost savings of Euro 14 million.

“The decline in global newsprint demand continues due to changes in consumer behavior, and it is not expected to recover. This has lead to global overcapacity, low operating rates and poor profitability at the Hylte Mill. The planned measures would improve the competitiveness of the mill. Also, Stora Enso has invested in the site’s future to produce formed fibre products and biocomposites,” says Kati ter Horst, EVP, paper division.

Stora Enso will continue to produce standard newsprint at Hylte, Langerbrugge and Sachsen mills. The closure of Hylte Mill PM3 will not impact Stora Enso’s newsprint product offering. This closure is part of more than 2 million tons of newsprint and other publications being taken out of production. For a complete list of changes of products and reductions please see our article and Table 2 in the article, IppStar newsprint expert outlook and update uploaded on 14 September 2020.