Euro-Graph Publishes Monthly Statistics of the European Graphic Papers Industry

On October 24, UPM announced plans to permanently close paper machine 5 at UPM Blandin in Minnesota, United States in response to overcapacities in the North American paper market. All related processes have now been completed, and paper machine 5 will be permanently closed latest on 30 December 2017. The closure will reduce the annual capacity of coated magazine paper by approximately 128,000 tons. The number of positions affected is 148. Paper production related to paper machine 6 will continue at the Blandin site. Click Read More below for additional information.

During last year, we reviewed Stora Enso’s strategic agenda and identified our focus areas going forward. We want to focus on and take leading market positions in the segments where we see potential for future growth, namely packaging, wooden construction and biomaterials innovation from lignin. As a consequence of our strategic direction, we are in the process of exiting the segment of dissolving pulp for viscose production globally. This segment is not core for us and stands for only a small part of our overall business. Dissolving pulp is produced at Stora Enso’s Enocell mill, which currently produces both standard and dissolving pulp grades. Production at the Enocell mill will continue with other types of pulp grades than dissolving pulp and for other end uses than viscose.

Financial Highlights – Third Quarter vs. Second Quarter *Net income from continuing operations of $58 million vs. $49 million *Cash provided by operating activities from continuing operations of $197 million vs. $77 million. Commercial and Operational Highlights – Third Quarter vs. Second Quarter *Price and mix decreased by $55 million due primarily to lower paper prices in Europe and on exports from Latin America, as well as lower global pulp prices *Volume increased by $6 million due to increases in Latin America and North America *Operations and other costs improved by $1 million due to better operating and supply chain results offset by $13 million in higher unabsorbed fixed costs from increased economic downtime *Planned maintenance outage expenses decreased by $55 million *Input costs improved by $27 million driven by favorable fiber, chemical and transportation costs