Eastern European Markets
March 7, 2007

Stora Enso is planning to close down its Sauga Sawmill in Estonia

Stora Enso is planning to close down Sauga Sawmill in Estonia in June 2007, owing to a continuing shortage of raw material, resulting in higher costs and unprofitable operations. The closure will not have a material impact on Stora Enso's annual sales, but it is expected to have a slightly positive impact on the Group's full year 2007 operating profit. The Company will record a write-down and restructuring provision totalling about EUR 12 million as non-recurring items in the first quarter of 2007.

Sauga Sawmill has an annual technical production capacity of 130 000 m3 of sawn wood, of which 90000 m3 can be further processed. It is planned to utilise some of Sauga Sawmill's machinery at Stora Enso's other sawmills, to the extent feasible.

"Stora Enso's production and sales of sawn goods in the Baltic States are expected to remain essentially unchanged after the closure of Sauga Sawmill, as customers will be supplied from Stora Enso's other sawmills.

Sauga Sawmill has 107 employees and Stora Enso Timber is looking at various opportunities for internal redeployment to for example Paikuse, Imavere and Näpi sawmills and to Viljandi further processing mill.

Stora Enso Timber will be able to offer approximately 30 positions. Outplacement to other forest products companies in the Pärnu area and financing of retraining to take up employment outside the forest products industry are also being considered" says Peter Kickinger, Executive Vice President, Stora Enso Timber.

Further information
Hannu Ryöppönen, CFO, tel.+44 20 7016 3114
Peter Kickinger, EVP, Stora Enso Timber, tel. +43 1 269 7460 1375
Kari Vanio, Executive Vice President, Corporate Communications,
tel. +44 7799 348 197
Keith B Russell, Senior Vice President, Investor Relations,
tel. +44 7775 788659
Ulla Paajanen-Sainio, VP, Investor Relations and Financial
Communications, tel. +358 2046 21242


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