Stora Enso Plans Restructuring and Profitability Improvement Actions

Stora Enso Plans Restructuring and Profitability Improvement Actions

Permanent Shutdown of 475 000 Tonnes of Newsprint Capacity Planned

HELSINKI, Finland, Feb. 5, 2013 (GLOBE NEWSWIRE) -- STORA ENSO OYJ STOCK
EXCHANGE RELEASE 5 February 2013 at 12.57 EET

Stora Enso plans to restructure its operations through the permanent shutdown
of two newspaper machines in Sweden. Stora Enso also plans efficiency
improvements in the Printing and Reading customer service and the Building and
Living Business Area. The profitability improvement actions are planned to
reduce annual costs by EUR 54 million and reduce the number of employees by
approximately 600 altogether.

Printing and Reading plans to close capacity in Sweden and reorganise its
Customer Service Centres

Printing and Reading plans the permanent shutdown of paper machine (PM) 2 at
Hylte Mill in Sweden with annual capacity 205 000 tonnes of newsprint and PM
11 at Kvarnsveden Mill in Sweden with annual capacity 270 000 tonnes of
newsprint in the second quarter of 2013. This represents 3.4% of European
newsprint capacity. The plans to shut down capacity are due to continuing
structural weakening of newsprint demand in Europe.

In addition, Stora Enso plans to create a common platform for all its Printing
and Reading sales desk, order handling and logistic services in Europe to
improve customer service. These processes currently handled at seven customer
service centres, mills and logistic service centres will be centralised into
five customer service centres located in Finland, Sweden, Germany, Belgium and
the UK. It is planned to establish a separate Logistics Service Centre for
overseas business in Gothenburg, Sweden to serve all Stora Enso's Business
Areas.

Building and Living to streamline operations throughout the whole Business
Area

Building and Living plans to reduce costs, increase productivity and find
sustainable improvement in all operations to overcome continued poor
profitability.The plans announced include downsizing of Sollenau Sawmill in
Austria, transfer of some production from the high-cost Pfarrkirchen Mill in
Germany to the low-cost Zdirec Mill in the Czech Republic and efficiency
improvement actions at Kitee and Honkalahti sawmills in Finland. In addition,
Building and Living is planning cost reduction measures in all other units and
in sales and general administration, as well as in support functions
throughout the whole business area.

Financial impacts

Stora Enso will record a restructuring provision and a fixed asset and working
capital write-down as non-recurring items related to the restructuring plans
described above with a negative impact of approximately EUR 88 million on the
operating profit in its first quarter 2013 results.


                                     Fixed asset and      Provisions Planned
Segment     Annual sales Annual cost working capital      with cash  reduction
            reduction    savings     write-downs          impact     in
                                                                     personnel
                         EUR 24
                         million,
Printing    EUR 190      starting Q3 EUR 42 million       EUR 40     300
and Reading million      2013, full                       million
                         impact Q1
                         2014
                         EUR 30
                         million,
Building    No impact    starting Q2 -                    EUR 6      300
and Living               2013,                            million
                         full impact
                         early 2014
Total       EUR 190      EUR 54      EUR 42 million       EUR 46     600
            million      million                          million

No decisions regarding closures and employee reductions will be taken until
the local co-determination negotiations have concluded. Stora Enso would make
every effort in co-operation with local communities to help the affected
personnel find new employment opportunities, and all job openings in other
Stora Enso units would be available to those affected.

For further information, please contact:

Jouko Karvinen, CEO, tel. +358 2046 21410
Karl-Henrik Sundstrom, CFO, tel. +46 1046 71660
Ulla Paajanen-Sainio, SVP, Investor Relations, tel. +358 2046 21242
Lauri Peltola, EVP, Global Identity, tel. +358 2046 21380

www.storaenso.com
www.storaenso.com/investors

Stora Enso is the global rethinker of the paper, biomaterials, wood product
and packaging industry.We always rethink the old and expand to the new to
offer our customers innovative solutions based on renewable materials. Stora
Enso employs some 30 000 people worldwide, and our sales in 2011 amounted to
EUR 11.0 billion. Stora Enso shares are listed on NASDAQ OMX Helsinki (STEAV,
STERV) and Stockholm (STE A, STE R). In addition, the shares are traded in the
USA as ADRs (SEOAY) in the International OTCQX over-the-counter market.

STORA ENSO OYJ