Stora Enso said it plans to permanently shut down the Group's corrugated packaging converting unit in Chennai, India, due to unprofitability and a major decrease in local market demand. The mill employs 350 people, who will receive compensation and other support.
The company said the total negative impact on its operating profit in the second quarter of 2015 will be approximately 8 million euros, mainly related to a restructuring provision. Excluding the one-time impact, the closure will not have a material impact on Stora Enso's sales and operational EBIT, the Group said.
The packaging unit in Chennai has been part of Stora Enso since July 2011, following the Group's acquisition of 51% of the shares in Inpac International in China.