Stora Enso spent USD 204 million during 2004 to secure the long-term viability of its North American mills and significantly reduce costs. The aim of the Profit Enhancement Programme is to cut costs, upgrade assets and enhance the product mix. When the programme is complete in mid 2005, the Group’s fine paper machines will be among the best in North America. Importantly, as a measure of the programmes, profitability is already improving, as seen in the significant improvement between first half and second half 2004 profitability.

Improved results

The target of the Profit Enhancement Programme, including the later announced fixed cost reduction plan, is to improve annual EBITDA by USD 145 million. The programme started delivering a substantial positive contribution during the second half of 2004 and is on target to achieve the expected profitability improvement.