Stora Enso Oyj will close two paper plants in Europe that employ 670 people by the end of 2007, and will take a writedown of euro270 million (US$345 million) in the third quarter of this year, the company said Wednesday.
The Reisholz Mill in Germany and the Berghuizer Mill in Netherlands will be shut down because of "a lack of profitability," the Finnish-Swedish paper maker said.
Two other plants in Finland and Germany _ which also have been under the company's financial scrutiny since October _ will remain open "while further improving their financial performance."
Shares in Stora Enso fell 1.5 percent to euro11.85 (US$15.09) in Helsinki trading.
Stora Enso is one of the world's largest forest product companies, producing magazine paper, newsprint, fine paper, pulp and packaging boards. It employs 46,000 people in more than 40 countries.
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