Stora Enso to shed 180 German jobs at paper mill
Europe's largest paper maker Stora Enso on Tuesday said it would be shut down a newsprint machine at its German mill in Maxau, with the loss of 180 jobs.
"The European market is heavily oversupplied and the cost of raw materials is expensive," executive vice president Juha Vanhainen told AFP.
"We don't see the market recovering to what it was in 2008, and we don't see this mill becoming profitable again," he added.
Stora Enso did not expect market demand to rebound soon, but said it hoped the closure of the production line would boost its annual operating profit despite the likely decline of sales.
The effect of the closure on this year's bottom line would be minimal, except as a one-time reduction of working capital, said Vanhainen.
The company said it was working on a "social plan" for the employees who faced losing their jobs.
© 2010 AFP