EMCC European Monitoring Centre on Change

Stora Enso

Company/Organisation:
Stora Enso

Geographic Location

Country: Sweden
Region: Hallands län; Västsverige
Location of affected unit(s): Hylte

Company

Sector: Manufacturing
Manufacture of wood and paper products, and printing
17 - Manufacture of paper and paper products
Number Employed: 420

Employment Effects

Announcement Date: 16-09-2020
Planned Job Reductions min: 140
Planned Job Reductions max: 140
Type of Restructuring: Closure
Foreseen End Date: 16-10-2020
Direct Dismissals: 140

Additional Information

Stora Enso, a manufacturing company of wood and paper, has started codetermination negotiations at Hylte Mill, located in western Sweden, in order to permanently shut down one of two paper machines that produce newsprint in Hylte, and a deinking plant. The paper machine is planned to be closed by the end of 2020, and the deinking plant latest in Q2 2021. The planned closure will affect a maximum of 140 persons, which corresponds to approximately one-third of the workforce in Hylte Mill.

According to the company, the global demand for newsprint continues to decrease as a result of changing consumer behaviour which has resulted in poor profitability of the mill. To meet future demands, Stora Enso will focus on developing their production of formed fibre products and bio-composites instead of newsprint.  An employer representative from the forest industry workers trade union in Sweden argues that although the decision was expected, this will be is a hard blow for the mill industry in Hylte. 

Stora Enso is a Finnish forest industry group, with 26,000 employers spread over 30 countries in Europe, South America, North America and Asia.

Sources: