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Stora Enso Closes Two Paper Machines in Varkaus

The paper manufacturer Stora Enso has confirmed it is to close down two paper production machines in its paper mills in the city of Varkaus. Production of newsprint and directory paper will end, and 175 people will lose their jobs.

Suomen lippu puolitangossa Stora Enson tehtailla Varkaudessa.
Suomen lippu oli aamulla puolitangossa Stora Enson Varkauden tehtailla. Image: YLE / Toni Pitkänen

The Varkaus mill will continue to produce fine paper and pulp.

The production of biofuel produced by the Stora Enso sawmill together with Nestle Oil continues. According to the company, the upcoming closures will have no effect on the renewable energy production in Varkaus.

Stora Enso evaluates that the closure of the two paper machines will reduce company revenue by 148 million euros, but profit before taxes will increase by 9 million euros.

Hundreds are at risk to lose their jobs

Currently the mills in Varkaus employ 506 people. The number doesn’t include the 170 staff from Efora, the maintenance company of Stora Enso.

Efora held its own labour negotiations which involved some 70 employees. However, Managing Director Toni Turkama says that Efora hasn’t yet made any final decisions on how many staff members it will lay off.

The head shop steward Kai Päräinen at the mills in Varkaus was shocked to hear about the closing of two paper machines. According to Pärnäinen, the decision could have been different as paper markets are slowly picking up.

Pärnäinen is worried that the closures will increase substantially the amount of sick leave taken among staff. “At least some employees have slept badly over the last few months.”

Sources: YLE