Stora Enso is planning to close down Sauga Sawmill in Estonia in June 2007, owing to a continuing shortage of raw material, resulting in higher costs and unprofitable operations. Sauga Sawmill has an annual technical production capacity of 130 000 m3 of sawn wood, of which 90 000 m3 can be further processed. It is planned to utilise some of Sauga Sawmill's machinery at Stora Enso's other sawmills, to the extent feasible.
The closure will not have a material impact on Stora Enso's annual sales, but it is expected to have a slightly positive impact on the Group's full year 2007 operating profit. The Company will record a write-down and restructuring provision totalling about EUR 12 million as non-recurring items in the first quarter of 2007.
"Stora Enso's production and sales of sawn goods in the Baltic States are expected to remain essentially unchanged after the closure of Sauga Sawmill", says Peter Kickinger, Executive Vice President, Stora Enso Timber.
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