Announced in August 2002, two years after Stora Enso acquired Consolidated Papers, the Profit Enhancement Programme aims to improve significantly Stora Enso North America’s competitiveness and longer-term profitability, and position its operations for profitable growth in the USA, the world’s largest paper market. Action was necessary as the division was making losses for several reasons, including downturn in the economy, increased global competition, and high energy and fixed costs.

Workforce reductions associated with these changes are difficult and not done without great concern for the well-being of those employees affected. Permanent machine shutdowns have been challenging, too, but workforce and asset restructuring combined with a total of USD 250 million of capital expenditures have infused new life and purpose into the Group’s North American mills. North America continues to be an important market for Stora Enso’s products.

Stora Enso is investing in the best machines and improving their capacity while closing down older smaller ones. The overall capacity will therefore remain similar following completion of the investment projects.

The machine upgrades improve cost competitiveness, but modernised working practices are also crucial to the success of the programme. Introducing more efficient working practices will ensure the Group remains an attractive and reliable supplier for customers and retains its strong position in the US market.