3 - Stora Enso

FINE PAPER
Cost-effi cient
production and
superior
customer
service
Stora Enso’s Fine Paper division produces graphic and
offi ce paper at its mills in Europe, the USA, and China.
The value chain extends from plantations to pulp and paper
production, sheeting, and merchant operations.
Stora Enso Fine Paper’s strategic
objective is to be the leading and
most profi table fi ne paper supplier
globally. The division will achieve this
goal through a mix of cost-effi cient production
and superior customer service,
and by winning and retaining signifi cant
market share in target segments and
regions.
A new global division
As part of a review of its organisational
structure during 2005, Stora Enso
Asset Performance Review
Mill Action Capacity Grade Country
Varkaus Mill, PM 1 Planned closure 95 000 t WFC Finland
Grycksbo Mill Divestment 280 000 t WFC Sweden
Celbi Mill Possible divestment 305 000 t Short-fibre pulp Portugal
Berghuizer Mill Under scrutiny 235 000 t WFU
WFC and
Netherlands
Uetersen Mill Under scrutiny 270 000 t coated specialities Germany
16• STORA ENSO COMPANY 2005
brought together all its fi ne paper operations,
including those in the USA and
China, and its paper merchant operations,
to form a global Fine Paper division.
The reorganisation will especially
improve the strategic business management
of the Graphic Paper business
area’s global production network.
Measures to improve performance
The Profi t 2007 programme and the Asset
Performance Review have resulted in a
series of measures to improve the
WFU=wood-free uncoated, uncoated fine paper, office paper WFC=wood-free coated, coated fine paper, graphic paper
performance and profi tability of Fine
Paper division’s European operations. As
part of Profi t 2007, Fine Paper will focus
primarily on two areas: improving pipeline
effi ciency and reducing administrative
and other fi xed costs. Improving
pipeline effi ciency will involve taking a
close look at current sales practices and
developing them, and improving the supply
chain between mills and merchants.
As part of the Asset Performance
Review, Fine Paper is planning to close
one paper machine and divest one paper
mill. The possible divestment of Celbi
Pulp Mill is also being assessed. The mill
is performing well, but following the
start-up of Veracel Pulp Mill, the Group’s
pulp balance has changed, and pulp production
for captive use is now larger
than needed. These measures will be
completed during 2006. In addition, two
paper mills are under scrutiny. The fi nal
decisions about possible actions on these
will be taken during 2006.
The Profi t Enhancement Programme
in North America was completed in 2005