Massive changes planned by Stora Enso to improve its competitiveness

Swedish pulp and paper giant Stora Enso is planning to make itself leaner and more competitive with a number of restructuring plans for its operations and management.

The plans are aimed at improving profitability and focusing on growth markets, but will also mean thousands of job losses, which is why the process won’t start until negotiations with staff have been concluded.

The plans involve the closure of Stora Enso’s Sunila pulp mill in Finland, the De Hoop containerboard site in the Netherlands, one containerboard line at its Ostrołęka site in Poland, and the Näpi sawmill in Estonia, all with the loss of 600 employees.

To reduce and reorganise its group management there will be a planned reduction in employees. Some 1,300 are within the scope of the group function negotiations, with a planned reduction of about 300.

Stora Enso has recently completed most of the change negotiations in its Packaging Materials division with a reduction of around 250 jobs in its management and support functions.

Although the changes are expected to cut annual sales by about €380 million, or about 3.3 percent of last year’s sales of €11.7 billion, yearly earnings before interest and tax are expected to increase by €110m. In the 2022 results, operational ebit was €1.9bn. The cost of restructuring could be up to €190m.

Annica Bresky, chief executive of Stora Enso, said: “These measures are of course very difficult and would not be proposed unless it was absolutely necessary for our long-term competitiveness.

“We are at a critical juncture in our strategy advancement, and to further our market position an increased focus on capital allocation and decentralised empowerment is needed. This sadly means that assets suffering from challenged profitability would need to be closed, in combination with a more streamlined headquarter organisation.

“Through these actions we would be able to continue to deliver strategic growth from a more resilient and cost-efficient business platform, better equipped to support the longterm growing demand for Stora Enso’s renewable products.”

● Stora Enso has opened a corrugated packaging plant at De Lier in the Netherlands. Expansion at the site, part of the recently-acquired De Jong Packaging group, adds a new, second factory and the equipping of the facility with two new corrugators to augment the existing two. As a result of the expansion, the site is now said to be the largest and most modern corrugated packaging facility in Europe.

Solenis completes $4.6bn acquisition of Diversey

Speciality chemicals supplier to the pulp and paper industry, Solenis has completed the US$4.6 billion acquisition of Diversey Holdings, a leading provider of hygiene, infection prevention and cleaning products and technology.

Based in Wilmington, Delaware, Solenis was acquired by Platinum Equity in 2021. Bain Capital, the majority shareholder of Diversey, will hold a minority stake in Solenis as a result of this transaction.

Commenting on the sale chief executive of Solenis John Panichella commented: “This merger makes Solenis a more diversified company with significantly increased scale, broader global reach and the ability to offer a ‘one-stop shop’ suite of solutions that meet customer demand and address water management, cleaning and hygiene issues on a global basis.

“Together, we have a foundation from which we can continue to leverage our strong customer partnerships, leadingedge innovations and valueadded services to propel Solenis’ aggressive growth trajectory. With continued support from Platinum Equity, we are confident that we will maximise the promising opportunities ahead.”