HELSINKI (AP) — Stora Enso Oyj said Wednesday it will lay off up to 1,100 workers, cut production and close mills in Finland as the Nordic paper maker continues to struggle with dwindling revenue.
The announcement came four weeks after the company reported a second-quarter net loss of €368 million ($523 million) and a 24-percent drop in net sales to €2.2 billion.
Stora Enso said it will close a pulp mill by the end of the year and a sawmill in 2010. Also, cutbacks and reorganization at other mills will be made to save costs, it added.
Earlier this year, Stora forecast a weak third quarter and warned of layoffs, plant closures and production cuts.
Stora Enso is one of the world's largest forest product companies making magazine paper, newsprint, fine paper, pulp and packaging boards. The group has 29,000 employees.