Stora Enso reorganizes, writes down
September 11, 2007 By Pulp & Paper Canada
Helsinki, Finland — Stora Enso, the world’s largest paper maker, announced last week in a press release that it is…
Helsinki, Finland — Stora Enso, the world’s largest paper maker, announced last week in a press release that it is reorganizing its operations from the current four divisions into eight separate business groups. It is also writing down the value of its assets by $1.45 billion CAN and taking an additional charge of $435 million CAN on goodwill.
“The main objectives of the reorganization are to give business area leaders and their teams clear responsibility for improving financial performance, remove layers of management and to speed up decision-making,” said Stora Enso CEO Jouko Karvinen. “We also seek to improve the performance of our North American operations by reorganizing them into a separate entity with full profit and loss responsibility reporting directly to me,” he added. The new organizational structure is effective immediately.
The company stated that the write-down was based on a number of factors, including higher wood costs, a deteriorating outlook for magazine papers, rising interest rates and adverse currency movements. A report by Bloomberg News notes that Stora has cut about 1,600 jobs and closed mills in the last two years to help reduce overcapacity that was pushing down prices.
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