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FACTBOX-Cost cutting by European paper makers

Published 08/19/2009, 09:37 AM
Updated 08/19/2009, 09:39 AM
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Aug 19 (Reuters) - Europe's biggest paper maker Stora Enso will close mills in Finland due to weak demand, slashing up to 1,100 jobs and booking an almost 600 million euro ($846.1 million) charge in the current quarter, it said on Wednesday.

Here is a comparison of key cost cutting measures adopted by major paper companies in Europe since Jan. 2009:

* STORA ENSO:

-- Job cuts - 3,100 between Jan. 2009 to Aug. 2009.

-- Announced it would permanently close its Tolkkinen sawmill by end of 2009 and its Sunila Pulp Mill during the second quarter of 2010.

-- Cut capex to 400 million euros in 2009 from 500 million.

-- Cut around 20 percent of paper and board production in the first quarter of 2009.

* M-REAL:

-- Cut production of folding box and linerboard by about 20 percent.

-- Discontinued paper production at Hallein mill by the end of April 2009 and also stopped production of standard coated fine paper in Gohrsmuhle mill.

-- At end of June 2009, the company had 6,080 employees as against 6,314 at end of March 2009.

* NORSKE SKOG:

-- Announced 600 job cuts on June 12, 2009.

-- Cut capex by 400-600 million crowns ($63-$95 million)

-- Temporarily stops the 225,000 tonnes-per-year machine at its Parenco mill.

-- Cuts newsprint production in Europe by 200,000 tonnes and magazine paper by 75,000 tonnes in 2009.

* SCA:

-- Has said it would reduce capex by 1 billion crowns ($124 million) in 2009.

-- Cut 2,200 job cuts in Europe in April 2009.

-- Closes 11 corrugated board plants.

-- Closed New Hythe testliner mill, with a capacity of 260,000 tonnes.

* UPM Kymmene:

-- Stopped production at its Lahti processing plant.

-- Cut 110 jobs and temporarily laid off 320 staff on April 14, 2009.

-- Reduced the number of employees by 1,191 by the end of June 2009 from Jan 2009.

-- Cut capex to 400 million euros in 2009, down from 550 million in 2008.

(Writing by Carl Bagh, Bangalore Editorial Reference Unit; Editing by David Cutler and Jon Loades-Carter)

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