Stora Enso

Redundancies in 2004

For the third year in a row the largest personnel reductions occurred in North America, as a consequence of the Profit Enhancement Programme, which aims to restore profitability to a level that would support the long-term viability of US operations. Stora Enso endeavours to take a long-term approach in order to minimise the negative impacts of redundancies for those involved.

  • Wood Supply Russia – As a result of the integration of a recently acquired harvesting company Ladenso, 90 employees were made redundant. Internal opportunities were identified where possible, and compensation was also offered.
  • Wisconsin Rapids Paper Mill – 90 employees were made redundant in 2004. Outplacement services were offered, and government benefits were available for those seeking further education.
  • Kimberly Mill – 81 employees were made redundant. Each was given a severance package, and some also received retirement benefits. All were additionally eligible for Trade Readjustment Allowances & Trade Adjustment Assistance and NAFTA schooling. Management employees were offered outplacement services.
  • Nymölla Mill – Due to the cost-cutting programme decided upon in August 2003, 78 employees were made redundant in 2004. A total of 34 employees were offered early retirement, and five subsequently found alternative jobs at the mill. A special programme was established to help the other redundant employees to find jobs outside Stora Enso.
  • Corbehem Mill – As part of the restructuring programme announced in 2003, 55 employees were made redundant in 2004. Measures taken include retirement plans, internal transfers and outplacement services.
  • Anjalankoski Mill – As part of the cost-cutting programme announced in 2003, 51 employees were made redundant in 2004. One received outplacement services and 50 were eligible for unemployment pension, disability pension or retirement pension.
  • Uetersen Mill – As a result of a cost-cutting programme announced in 2003, 40 employees were made redundant in 2004. Of these, 19 employees were offered early retirement packages, 4 received unemployment pension and others were offered possibilities for further education.
  • Stevens Point Mill – 30 employees were made redundant. Severance packages were offered to all employees. Additional education was offered to qualified employees. An unemployment compensation service was also provided.
  • Wisconsin Rapids Pulp Mill – 25 employees were made redundant in 2004. Among the options offered were severance packages for early retirements, voluntary severances, inter-company transfers, outplacement services and retraining funds.
  • Kotka Mill – A reduction in the number of shifts worked per week on one impregnation line resulted in 23 job losses. Of the employees affected, 21 will receive unemployment pension and two will receive disability pension.
  • Grycksbo Mill – Due to a cost-cutting programme, 20 employees were made redundant, of whom 15 were offered early retirement, four have received further education in order to learn new competencies, and one received a redundancy package.
  • Uimaharju Sawmill – Due to reorganisation and the installation of an automatic computerised timber grading system, 19 employees were made redundant. All received unemployment pensions.
  • Imavere Sawmill – Due to problems with the wood supply, one production line was changed from a three-shift to a two-shift working cycle. A total of 15 employees were made redundant, of whom 10 found alternative jobs at the beam mill, and 5 received redundancy payments.
  • Honkalahti Sawmill – Due to the installation of an automatic computerised timber grading system, 14 employees were made redundant. All were offered unemployment pension plans.
  • Varkaus Mill – 14 employees were made redundant of which 11 found alternative jobs at the integrate and three were offered retirement plans.
  • Papyrus Poland – Due to the closure of two branch sales offices and a warehouse, 13 employees were made redundant. 
  • Stora Enso Packaging Sweden – Due to a cost-cutting programme, 11 people were made redundant. All were offered early retirement plans.
  • Veitsiluoto Sawmill – Due to the installation of an automatic computerised timber grading system, 10 employees were made redundant. Seven accepted unemployment pension plans and two received disability pensions.
  • Gruvön Sawmill – Due to the installation of an automatic computerised timber grading system, 8 employees were made redundant. Four were offered early retirement and four were offered redundancy money.
  • Corenso UK – Due to the outsourcing of internal transport, a cost reduction programme and restructuring management at Bolton, 8 employees were made redundant. Alternative positions within the company were offered and employees were given paid leave to seek new employment. All took redundancy payments.
  • Summa Mill – As part of the process of closing down paper machine no. 1, eight employees were made redundant in 2004. All will receive unemployment pensions.
  • Stora Enso China Sales – Due to the restructuring of the sales organisation, 5 employees were made redundant. One was offered early retirement and four received redundancy packages.
  • Corenso Elfes – Due to outsourcing projects, 3 persons were made redundant. Two of the affected employees were kept on by the outsourcing partner company and one found new employment in the same area.
  • Stora Enso Packaging Finland – 3 employees were made redundant and received unemployment pension.
  • Stora Enso Austria – As part of a restructuring programme at the sales office, 3 employees were made redundant. They received redundancy payment. In addition, another three employees will work part-time during the next few years until reaching retirement age.
  • Stora Enso Deutschland – In order to increase the cost-efficiency of the German sales office, 3 employees were made redundant. All accepted early retirement plans.
  • Papyrus Belgium – Due to Papyrus’s cost-cutting programme, 3 employees were made redundant. Two were offered early retirement and one was offered outplacement services.
  • Planá Sawmill – Two mechanics were outsourced and started working for the forklift contractor.
  • Papyrus Hungary – Due to Papyrus’s cost-cutting programme, 2 employees were made redundant and offered redundancy payments.
  • Papyrus Holland – As a result of restructuring in 2003, two employees were made redundant. One was offered early retirement and the other received outplacement services.
  • Papyrus Norway – Due to Papyrus’s cost-cutting programme, one person was made redundant and offered outplacement services.


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