19 February 2014
Stora Enso enhances efficiency in Central European sawmills
Stora Enso is planning to invest EUR 28 million in modernising and developing Murow Sawmill in Poland to increase its capacity and improve its competitiveness. Stora Enso also plans permanent closure of Sollenau Sawmill in Austria.
Stora Enso is rethinking its geographical mix as part of its transformation into a renewable materials company. The investment in Murow Sawmill will develop Stora Enso’s wood product offering in the growing Central and Eastern European markets. Stora Enso will also utilise the platform in Poland to support growth in selected overseas markets.
The investment in Murow Sawmill will increase Stora Enso’s consumption of Polish saw logs. The production capacity of the sawmill will rise to 140 000 m³/shift/year. Over the next five years, Stora Enso plans to increase the sawmill’s output gradually to 400 000 m³ per year.
The planned closure of Sollenau Sawmill will affect up to 125 employees and generate annual savings of up to EUR 7 million from the second quarter of 2014 onwards. Stora Enso is now initiating negotiations with employee representatives regarding the social plan. Sollenau Sawmill’s customers will be served from Stora Enso’s other mills in Austria and the Czech Republic. It is planned to shut down the saw line permanently at the end of the first quarter of 2014. Stora Enso also has beam and planer production lines at Sollenau that are planned to be permanently shut down in the second quarter of 2015. The sawmill has an annual production capacity of 400 000 m3.
Stora Enso will record a restructuring provision and fixed asset write-down as a non-recurring item related to the planned closure with a negative impact of approximately EUR 10 million on operating profit in its first quarter 2014 results.
About Murow Sawmill
Murow Sawmill was established in 1952 and was from the beginning one of the biggest sawmills in Poland. The mill consists today two saw lines, drying chambers as well as planing and further processing equipments.
Murow Sawmill is producing pine and spruce sawn timber around 70 000 m3 per year. The sawmill has very good infrastructure and logistic connections. The are around Murow, South Poland, offers excellent raw material supply with high quality sawlogs.