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.

The Covid-19 pandemic led to the country-wide lockdown on 25 March 2020. It will be two years tomorrow as I write this. What have we learned in this time? Maybe the meaning of resilience since small companies like us have had to rely on our resources and the forbearance of our employees as we have struggled to produce our trade platforms.

The print and packaging industries have been fortunate, although the commercial printing industry is still to recover. We have learned more about the digital transformation that affects commercial printing and packaging. Ultimately digital will help print grow in a country where we are still far behind in our paper and print consumption and where digital is a leapfrog technology that will only increase the demand for print in the foreseeable future.

Web analytics show that we now have readership in North America and Europe amongst the 90 countries where our five platforms reach. Our traffic which more than doubled in 2020, has at times gone up by another 50% in 2021. And advertising which had fallen to pieces in 2020 and 2021, has started its return since January 2022.

As the economy approaches real growth with unevenness and shortages a given, we are looking forward to the PrintPack India exhibition in Greater Noida. We are again appointed to produce the Show Daily on all five days of the show from 26 to 30 May 2022.

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