Stora Enso of Finland Cuts Newsprint Production

Italy's Burgo Group also announces production cuts.

February 6, 2013
Recycling Today Staff
Legislation & Regulations Paper

Stora Enso, based in Helsinki, Finland, has announced plans to close two of its newsprint machines at its newsprint mills in Sweden. The company expects to have the closures completed by the middle of 2013.

Combined, the closure of the two machines will reduce Stora Enso’s newsprint production by 475,000 metric tons, roughly 3.4 percent of the European newsprint capacity.

Stora says that the permanent shutdown of its paper machine at its Hylte mill will reduce newsprint capacity by 205,000 metric tons, while the shutdown of a paper machine at its Kvarnsveden mill will reduce its newsprint capacity by 275,000 metric tons. In shuttering capacity, Stora Enso says the moves are reflective of the continued erosion of the newsprint market in Europe.

In an announcement, the company also announced plans to reorganize its logistics service center throughout Europe and to close a number of locations.

In other newsprint-related news the Italian firm Burgo Group recently announced it was halting production at its newsprint mill in Mantova, Italy, starting Feb. 9, 2013. The mill has a current capacity of 150,000 metric tons of newsprint per year.

In announcing plans to close the facility, Burgo says that its decision to shutter the facility is due to high energy costs in Italy. Additionally, the company notes that an overcapacity of newsprint in Europe, as well as raw material costs, also are reasons for shuttering the mill.

In a press announcement, Burgo Group says that it will evaluate developments of the competitive scenario before taking any decision about the future of the plant.