Stora Enso will reorganise its Renewable Packaging Division; comprising Consumer Board, Packaging Solutions and Packaging Asia, into three separate businesses reporting to the CEO, effective July 1.
The reorganisation has two objectives: to create more visibility internally and to address global responsibility challenges externally.
Jouko Karvinen, CEO, Stora Enso, said the changes will remove one organisational layer within the company.
“We want to increase clarity and transparency within and outside the group concerning the global responsibility challenges we have had and continue to have in China, India and Pakistan,” he said.
Mats Nordlander, head, Renewable Packaging Division and a member of the Group Leadership Team, will leave his present roles. He will continue to report to the CEO while his tasks are defined and agreed.
Karvinen added Consumer Board, Packaging Solutions and Biomaterials have been defined as the growth engines of the group.
“Although continued cost and capacity adjustments have maintained the cash generation of the group, the growth of the higher margin businesses has been limited,” he said.
“We must now get more energy and focus on this task to grow our top line faster and to manage the large investment projects and risks relating to them better.”
Stora Enso has initiated a human rights assessment across the group, which is a continuation of its efforts to integrate human rights issues into its business.
The effect of the changes on the segment structure and reporting will be announced before the end of the second quarter of 2014.