News

The newspaper Helsingin Sanomat reported on Thursday that three paper companies in the Nordic region, the Finnish and Swedish-owned Stora Enso, the Swedish Holmen, and the Norwegian Norske Skog plan to consolidate their manufacture of newsprint by setting up a joint venture.

The aim is to reduce overcapacity in production which has been pushing down prices of newsprint. The proposed joint venture would have the task of shutting down the least-profitable institutions. Under the proposal, none of the three companies would have a majority shareholding in the venture.

Stora Enso has already been shutting down newsprint production capacity. last year, the company’s newsprint division sustained 8 million euros in losses.

http://www.yle.fi/uutiset/news/2010/09/trading_suspended_in_stora_enso_shares_1949854.html