Published on : Thursday, February 20, 2014
Stora Enso plans permanent closure of Sollenau sawmill in Austria. The planned closure of Sollenau sawmill will affect up to 125 employees and generate annual savings of up to Euro 7 million from the 2Q 2014 onwards.
Stora Enso is now initiating negotiations with employee representatives regarding the social plan. Sollenau sawmill’s customers will be served from Stora Enso’s other mills in Austria and the Czech Republic.
It is planned to shut down the saw line permanently at the end of the 1Q 2014. Stora Enso also has beam and planer production lines at Sollenau that are planned to be permanently shut down in the 2Q 2015. The sawmill has an annual production capacity of 400,000 cubic metres.
Stora Enso will record a restructuring provision and fixed asset write-down as a non-recurring item related to the planned closure with a negative impact of approximately Euro 10 million on operating profit in its 1Q 2014 results.
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