Stora Enso will permanently shut down one of its paper machines at the end of April, axing 88 staff.
The announcement of paper machine 1 (PM 1) at the Veitsiluoto Mill, in Finland, was made in January this year, due to structural weakening of magazine paper demand in Europe.
Co-determination negotiations with employees at the mill, which has an annual capacity of 190,000 tonnes of coated magazine paper, have now finished and the plant will be closed.
The shutdown will decrease Stora Enso’s coated mechanical paper capacity by about 15%, which represents about 2% of total European coated mechanical paper capacity.
The company will now serve its NovaPress customers from Veitsiluoto Mill PM 5 and its Kabel Mill in Germany.
A spokesman for Stora Enso said it will make every effort to find jobs for the redundant staff and alert them to job openings in other Stora Enso units.