September 8, 2008 / 9:55 PM / 11 years ago

Stora to close pulp line at Enocell mill -report

HELSINKI, Sept 8 (Reuters) - Stora Enso (STERV.HE) plans to close its smaller production line at Enocell pulp mill in eastern Finland due to Russia’s rising duties on wood, local daily Karjalainen reported.

Jaakko Laukkanen, financial director of the mill, said in an article published at the daily’s website on Monday evening, that the company plans to stop production of hardwood pulp from birch on the site, leading to 50 job cuts.

The mill’s annual production capacity is 655,000 tonnes, and the smaller line contributes around one third of that.

Russia, an important source of wood for Finnish producers, raised export duties by 50 percent in April to 15 euros per cubic metre, and has said it would raise duties to 50 euros per cubic metre by 2009, which would more than double the cost of wood. [ID:nLJ116333]

Finland’s paper sector accounts for almost a fifth of the country’s exports and has in recent years imported more than 10 percent of its wood from Russia. (Reporting by Tarmo Virki; editing by Carol Bishopric)

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