Stora Enso Decides to Permanently Shutter Kitee Sawmill

SEATTLE (Scrap Monster): Stora Enso announced its decision to consolidate its spruce timber production to the Varkaus Mill in Finland. Accordingly, it has decided to permanently shut down the operations at the Kitee sawmill. The moves are part of the company’s profit protection programme aimed at improving the company’s long-term competitiveness in challenging market conditions.

The decision to permanently close the Kitee sawmill will lead to as many as 73 job redundancies. Out of this , nearly 20 will be handled by pension arrangements. At the same time, the increased production at Varkaus Mill is likely to create 20 new jobs. The affected employees of Kitee sawmill will be given priority in filling these and other internal positions within the mill facility, the company press release noted.

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Jari Suominen, Executive Vice President of Stora Enso’s Wood Products division noted that the company has decided to shutter the Kitee sawmill, after being unable to find any alternative measures that would lead to significant improvement in the profitability of the mill.

All possible support will be provided to Kitee sawmill employees in finding new employment opportunities, he said. Several companies in the neighborhood areas have already expressed interest in hiring the Kitee sawmill employees. Storo Enso is also working closely with the local Employment and Economic Development Offices, he added.