Stora Enso's Annual Report on Form 20-F Published

Stora Enso's Annual Report on Form 20-F Published

April 02, 2007

-- New market outlook and Berghuizer Mill closing schedule
finalised 


    HELSINKI, Finland, April 2 /Xinhua-PRNewswire/ -- Stora
Enso's Annual Report on Form 20-F was filed with the
Securities and Exchange Commission (SEC) on 29 March 2007.
The Annual Report on Form 20-F will be available in
electronic format (pdf) on the Group's website
http://www.storaenso.com/investors .

    Near-term Outlook

    In Europe: 

    Demand for uncoated magazine paper is expected to ease
after strong growth in 2006. Coated magazine paper demand
improved in early 2007 and is expected to be moderately
positive for the year. Modest demand growth is expected for
newsprint. Demand for uncoated fine paper remains good,
particularly in Eastern Europe. Demand is healthy and
strong order inflow is expected for coated fine paper and
packaging boards. Demand for wood products is expected to
be healthy in most markets. 

    Contract negotiations for newsprint prices have been
completed and prices increased by an average of 5% in
Western Europe. Magazine paper prices have declined at the
beginning of 2007 and may remain under pressure for
non-contractual business. Further price increases are
expected in uncoated fine paper, and increases are being
negotiated in coated fine paper. 

    Some moderate increases in packaging board prices are
implemented. Some production curtailments are expected at
Enocell Pulp Mill (part of Packaging Boards) in the second
quarter of 2007 due to shortage of raw material. In wood
products further product price movements are likely to
reflect wood costs. 

    In North America:Demand for newsprint is expected to
decline further. Demand for magazine paper, particularly
coated magazine paper, remains weak due to seasonal reasons
and underlying end-use weakness. Demand in coated fine paper
is forecast to remain flat. 

    Prices for publication papers are still declining.
Coated fine paper reel prices are under pressure, but some
price increases for sheet products are being negotiated.

    In China, coated fine paper demand is expected to
improve later in the spring and prices to firm up.

    In Latin America, modest growth in demand for coated
magazine paper is anticipated, but downward price pressure
is increasing.

    Operating cost inflation is forecast to be 2.0% to 2.5%
higher in 2007 than 2006, primarily because of increased
wood costs, including the impact of the Russian duties on
wood.

    Berghuizer Mill closing schedule has been finalisedThe
schedule for closing Berghuizer Mill in the Netherlands has
now been finalised. Paper machine (PM) 7 will permanently
cease production on 16 April 2007 and PM 8 on 31 October
2007. The total capacity of these machines is 245 000
tonnes of uncoated fine paper per year. Approximately 80
000 tonnes of Berghuizer Mill's annual production for
customers is expected to be transferred to Stora Enso's
Nymolla Mill in Sweden. The annual capacity of Nymolla Mill
remains unchanged at 485 000 tonnes, but the mill has made
some investments in asset quality to supply products with
higher value added to improve its customer service.
 


    For more information, please contact:

     Hannu Ryopponen, CFO
     Tel:   [phone]

     Kari Vainio, EVP
     Corporate Communications
     Tel:   [phone]

     Keith B Russell, SVP
     Investor Relations
     Tel:   [phone]

     Ulla Paajanen-Sainio, VP
     Investor Relations and Financial Communications
     Tel:   [phone]