Stora Enso is consulting with employees over revised plans to convert Oulu Mill to packaging board. The latest proposal would involve shutting one of the site’s paper machines with the potential loss of 400 jobs.
Last summer the biomaterials group announced a feasibility study into converting its entire production of more than a million tonnes of Lumi coated woodfree paper into brown-based cartonboard and kraftliner on the two paper machines at the Oulu site in Finland, involving an investment of some €700m (£600m).
The revised plans involve a spend of €350m to convert PM7 to kraftliner with a capacity of 450,000 tonnes per annum, the modification of the pulp mill to produce unbleached brown pulp, and environmental improvements.
Paper machine 6 and a sheeting plant would be shut down, with the changes to take effect “by the end of 2020 at the latest”.
“The potential conversion of Oulu Mill would enable Stora Enso to further improve its position in the growing packaging business and take a major step in its transformation. The aim of the change is to improve the competitiveness of Oulu Mill and to ensure a long-term future for the mill,” the company said in a statement.