Latest News
Forestry Investment News
Stora Enso to move to Sweden and increase paper and sawmill production
08/04/2009
Finnish paper and sawmill firm, Stora Enso, has announced that it is moving its production from Finland to Sweden to make the most of cheaper wood prices and the weak Swedish currency.
The company says its results are expected to have fallen since the last quarter of 2008, but it hopes the relocation will enable it to up its production and benefit from cheaper timber and a weaker Krona.
The firm plans to increase output from its sawmills and paper mills in Sweden, while some of its mills in Finland will be running at last capacity to allow it to ramp up activity in the lower costs country.
In an interview with a Swedish business newspaper, Stora Enso’s CEO, Jouko Karvinen, stated, “we are very happy that we have factories in Sweden. The weak Krona is a good cushion in times like these. We will move as much production to Sweden as we can.”
He explained that for every one percent decline in the value of the Krona, the firm can add EUR 10 million onto its annual results. It has used its derivatives to protect itself against a rise in the value of the Krona.
The company says its results are expected to have fallen since the last quarter of 2008, but it hopes the relocation will enable it to up its production and benefit from cheaper timber and a weaker Krona.
The firm plans to increase output from its sawmills and paper mills in Sweden, while some of its mills in Finland will be running at last capacity to allow it to ramp up activity in the lower costs country.
In an interview with a Swedish business newspaper, Stora Enso’s CEO, Jouko Karvinen, stated, “we are very happy that we have factories in Sweden. The weak Krona is a good cushion in times like these. We will move as much production to Sweden as we can.”
He explained that for every one percent decline in the value of the Krona, the firm can add EUR 10 million onto its annual results. It has used its derivatives to protect itself against a rise in the value of the Krona.
RSS