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Finnish Paper Giant To Shut Down Packaging Mill In India


HELSINKI, June 22 (Xinhua) -- Finnish paper giant Stora Enso on Monday announced its plan to permanently close its packing mill in Chennai, India.

The Chennai mill was acquired by Stora Enso in 2011. It produces consumer and transport packaging made of corrugated board, primarily for sale in the local market.

The factory, which employs 350 workers currently, said it will provide compensation and re-employment support to those people who will lose their jobs.

The company said that the closure is due to unprofitability and a major decline in local market demand.

With the development of telecommunication technologies and the popularity of electronic means, global demand for paper products is expected to continue falling in the years to come.

UPM, a Finnish forest industry group, terminated four branches in Finland, France and Britain in November 2014 to reduce paper capacity in Europe.

Founded in 1998, Stora Enso has manufacturing facilities in nearly 20 countries around the world. By the end of 2014, it had about 27,000 employees worldwide.

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