Stora Enso moving ahead - will be ready for full Russian roundwood duties


Investments combined with capacity reductions to improve cost base and safeguard
critical customer volumes and assets                                            

STORA ENSO OYJ STOCK EXCHANGE RELEASE 10 September 2008 at 06.00 GMT            

Plans for permanent closures of assets with poor profitability totalling 600 000
tonnes of paper and board and 170 000 cubic metres of sawn goods annual         
capacity, as well as local productivity improvements, irrespective of Russian   
duty threat                                                                     
Plans for significant reductions in Russian wood sourcing organisation,         
controlled curtailments at Sunila and Enocell stand-alone pulp mills, and       
investment at Imatra pulp mill complete Stora Enso's plans for full Russian     
roundwood duty scenario                                                         
Planned investments of about EUR 135 million and volume transfers to safeguard  
profitable customer accounts and to prepare for higher Russian roundwood duties 
About 1 700 employees in total affected by the permanent capacity reduction and 
restructuring plans, including 600 employees in Germany, 550 in Finland, 400 in 
Russian Wood Supply and 150 in other countries                                  
New specialised maintenance joint venture in Finland; about 1 450 employees     
planned to be transferred                                                       
Provisions and write-downs totalling about EUR 280 million, about half of which 
are cash costs                                                                  
Estimated annual operating profit improvement EUR 140 million to be realised by 
the end of 2010                                                                 
Future growth opportunities in emerging markets, fibre-based packaging and      
selected paper grades, and cost-competitive plantation-based pulp raw material  

                                                                                
Jouko Karvinen, CEO of Stora Enso:                                              

Two steps in one go - plan to close down poor profitability assets and completed
plan for full Russian duties                                                    
“In July we said that in the third quarter we would announce restructuring plans
to address profitability problems that are independent of the Russian wood      
duties. Today we are not only doing that, but also saying that we will be ready 
for the anticipated increases in duties on roundwood imported from Russia. We   
will be able to operate without Russian roundwood in 2009, and we are doing this
in a way that gives us and Finnish forest owners time to increase domestic      
volumes still further. Our earlier actions, together with today's plans, have   
transformed Stora Enso from the largest importer of Russian wood into Finland to
being ready to operate effectively without Russian roundwood, if needed.        

“Had we not in the past 18 months undertaken the difficult but necessary        
restructuring actions, and successfully increased domestic wood sourcing in     
Finland early on, today's news would be not only far harder for our employees,  
but also much more drastic for the Group. As before, we are announcing today's  
plans to safeguard the future of the Group and most of its employees. I         
understand that the plans we are announcing today will be difficult for the     
employees affected. I want to assure them that we will do our utmost to help    
them find a new future. I hope our track record from the programme announced in 
autumn 2007 proves our commitment to achieving this.                            

Moving ahead                                                                    
“We continue proactively to build the future of the Group. Whilst taking the    
necessary steps to get through the ‘perfect storm', it is increasingly clear    
where the future growth opportunities for Stora Enso will come. We foresee a    
more focused Group, with fewer product lines. We also see the need to have a    
stronger asset base in growth markets. We have a strong starting position in    
fibre-based packaging materials and are convinced that versatile fibre-based    
packaging will compete successfully with plastics and other materials made from 
fossil fuels. These factors provide sound growth and earnings potential.        

“Another key to an exciting future is cost-competitive plantation-based pulp as 
raw material for paper and board products, based on fibre growth rates up to ten
times higher than in traditional northern hemisphere forests. As an early       
entrant into plantation-based eucalyptus pulp, Stora Enso is well positioned to 
capture this growth potential, particularly in Latin America and China.         

“The paper businesses, but possibly not all of them, will also remain part of   
Stora Enso. We will continue to work actively on consolidation solutions to     
create strong businesses within and outside Stora Enso that can create          
sustainable returns. Whilst we are doing this, we will continue to actively     
improve every business and every mill - as that will only enhance our value as a
potential partner.                                                              

“We are building a Group that will come out of this storm stronger than ever    
before - and succeed in the businesses we are in. We are making our own good    
times to come.”                                                                 

Consumer Board                                                                  

Moving ahead                                                                    
Consumer Board will maintain and develop its global leadership position by      
further strengthening the competitiveness of its existing production units and  
seizing growth opportunities in new markets. The aim is to grow in core markets 
by building on profitable customer segments and meaningful leadership positions.
Consumer Board will strongly promote packaging concepts based on renewable wood 
fibre. The plan is to invest in healthy and strong units through productivity   
improvements, streamlining and specialisation of mill operations.               

Capacity closures to improve cost-competitiveness                               
Stora Enso plans to permanently close down the cartonboard machine at Baienfurt 
in Germany with annual capacity 190 000 tonnes of folding boxboard by the end of
2008, subject to local consultation. The machine is planned to be closed due to 
persistent profitability problems caused by European overcapacity in folding    
boxboard, the strength of the euro and cost increases, especially for wood and  
energy. The plan is to continue serving the mill's customers from the Group's   
other board mills in Finland and Sweden. The sheeting service centre at         
Baienfurt will remain in operation to continue providing an excellent service to
customers.                                                                      

Stora Enso plans, subject to local consultation, to permanently shut down board 
machine (BM) 1 at Imatra in Finland with annual capacity 170 000 tonnes of      
cupstock and liquid packaging board by the end of 2009. The machine is          
unprofitable due to the strong euro and high wood costs. Stora Enso also plans  
to permanently shut down two polymer coating (PE) machines due to reduced       
polymer coating needs (PE 2 at Imatra and PE 4 at Karhula). The plan also       
includes an overall streamlining of operations at Imatra Mills.                 

Investing in profitable customer segments and to reduce dependence on Russian   
roundwood                                                                       
At the same time, Stora Enso plans to invest about EUR 135 million over the next
two years to develop the Group's operations at Imatra, Fors and Ingerois mills. 
At Imatra, investments in the pulp mill will reduce costs and the dependence on 
Russian roundwood. The annual capacity of BM 4 will be increased to improve     
product quality and to serve current customers of BM 1. Stora Enso will also    
invest to improve the efficiency and quality of the remaining PE coating lines  
and build one new sheeting line at Imatra. At Fors and Ingerois, the quality,   
capacity and productivity of the board machines will be improved and the        
sheeting capacity increased.                                                    
                                                                                
Additional planned permanent asset closures to improve cost-competitiveness     

Stora Enso plans to permanently shut down paper machine (PM) 3 at Kabel in      
Germany with annual capacity 140 000 tonnes of coated magazine paper by the end 
of 2008 due to profitability problems caused by overcapacity in Europe and      
increased wood and energy costs.                                                

Stora Enso plans to permanently shut down by the end of 2008 Corenso's coreboard
machine at Varkaus in Finland with an annual capacity of 100 000 tonnes, which  
is part of the Industrial Packaging business area, due to persistent            
profitability problems. Measures are also planned to be taken at Varkaus to     
improve profitability by enhancing efficiency in fine paper and newsprint.      

Stora Enso plans to permanently shut down the sawmill at Paikuse in Estonia with
an annual capacity of 170 000 cubic metres by the end of 2008 due to            
profitability problems caused by overcapacity and escalating sawlog prices.     

Planned permanent capacity reductions:                                          
--------------------------------------------------------------------------------
| Machine                  | Products                 | Annual capacity        |
--------------------------------------------------------------------------------
| Cartonboard machine at   | Folding boxboard         | 190 000 tonnes         |
| Baienfurt in Germany     |                          |                        |
--------------------------------------------------------------------------------
| BM 1 at Imatra in        | Cupstock and liquid      | 170 000 tonnes         |
| Finland                  | packaging board          |                        |
--------------------------------------------------------------------------------
| PM 3 at Kabel Mill in    | Coated magazine paper    | 140 000 tonnes         |
| Germany                  |                          |                        |
--------------------------------------------------------------------------------
| Coreboard machine,       | Coreboard                | 100 000 tonnes         |
| Corenso at Varkaus in    |                          |                        |
| Finland                  |                          |                        |
--------------------------------------------------------------------------------
| Paikuse sawmill in       | Sawn goods               | 170 000 cubic metres   |
| Estonia                  |                          |                        |
--------------------------------------------------------------------------------


Further productivity improvement measures in operations, maintenance and        
administration are planned at Veitsiluoto Mill in Finland, Maxau Mill in Germany
and Hylte Mill in Sweden and will reduce the numbers of personnel employed      
there.                                                                          

Stora Enso is now prepared for full Russian roundwood duty increases            

In good cooperation with the co-owner Myllykoski, Stora Enso will curtail pulp  
production at Sunila, and at Stora Enso's Enocell mill, if needed, when the full
Russian wood duties apply and based on the availability of low cost wood. In    
addition, Stora Enso plans to curtail sawmill production in order to adjust to  
the full Russian wood duties.                                                   

The above plans for curtailments, as well as the permanent closure of Kemijärvi,
Summa and Norrsundet mills, strengthening of the Finnish wood sourcing          
organisation in early 2007 and investments at Imatra Mills to reduce dependence 
on short-fibre pulp, will enable Stora Enso to be independent of Russian        
roundwood export in 2009. This plan also gives Stora Enso and Finnish forest    
owners time to continue increasing domestic wood supplies, and will enable      
efficient adjustment to any compromise on duties, or even a later reversal of   
the duties.                                                                     

Stora Enso plans to downsize substantially its Wood Supply Russia unit to adjust
to the current and future level of wood procurement in Russia.                  

Joint venture with ABB to provide maintenance services for six Stora Enso mills 
in Finland                                                                      

To improve productivity and decrease costs, Stora Enso and ABB have signed a    
letter of intent to establish a joint venture company to provide maintenance    
services at Stora Enso's Veitsiluoto, Oulu, Varkaus, Imatra, Enocell and Heinola
mills in Finland. Stora Enso will own 51% and ABB 49% of the shares in the joint
company. It is intended to transfer an estimated 1 450 Stora Enso employees to  
the new joint venture company, which will be under ABB management and is planned
to be in operation at the beginning of 2009.                                    
                                                                                
Mills at Kotka to remain part of the Group                                      

In October 2007 Stora Enso announced its intention to sell the mills at Kotka in
Finland. Negotiations to divest the mills have now ceased, mainly due to the    
turbulence in financial markets. There were interested buyers, but no           
satisfactory agreement was reached.                                             

As earlier announced, Stora Enso plans to outsource maintenance at Kotka to     
Empower and transfer 90 Stora Enso employees to Empower. Other productivity     
improvement measures to enhance the competitiveness of the mills and maintain   
service to customers will continue.                                             

Stora Enso plans to streamline its administration in line with its more focused 
businesses                                                                      

Stora Enso has been focusing its business portfolio for nearly a year and       
continues to do so. The Group also plans to reduce its administration to suit   
its more focussed business needs. The Group is already assessing its            
administrative functions at all levels of the organisation to determine which   
activities are needed to support the business. The results of the assessment    
will be ready by the end of 2008.                                               

Stora Enso's personnel responsibility                                           

Stora Enso is making every effort to help the affected personnel find new       
employment opportunities as fast as possible. Possible job openings in other    
Stora Enso units will be available to those affected. Stora Enso will also      
actively work with labour authorities to find new jobs and training             
opportunities for displaced employees outside the Group. There will be support  
for those who have to move to another location.                                 

Solutions have been found for some 800 employees affected by the restructuring  
programme announced in October last year.                                       

Estimated financial effects of the planned closures and personnel reductions on 
the Stora Enso Group (excluding reductions in administrative staff)             

The Group anticipates approximately EUR 280 million of provisions and fixed     
asset write-downs as non-recurring items in the financial results for the third 
quarter of 2008, about half of which are cash costs impacting over the          
restructuring period.                                                           


--------------------------------------------------------------------------------
| Segment                  | Financial impact of fixed asset write-downs and   |
|                          | provisions in Q3/2008                             |
--------------------------------------------------------------------------------
| Newsprint and Book Paper | EUR 7 million                                     |
--------------------------------------------------------------------------------
| Magazine Paper           | EUR 40 million                                    |
--------------------------------------------------------------------------------
| Fine Paper               | EUR 3 million                                     |
--------------------------------------------------------------------------------
| Consumer Board           | EUR 180 million                                   |
--------------------------------------------------------------------------------
| Industrial Packaging     | EUR 15 million                                    |
--------------------------------------------------------------------------------
| Wood Products            | EUR 8 million                                     |
--------------------------------------------------------------------------------
| Other (Wood Supply)      | EUR 27 million                                    |
--------------------------------------------------------------------------------


--------------------------------------------------------------------------------
| External sales reduction                         | EUR 440 million           |
--------------------------------------------------------------------------------
| Capital employed reduction                       | EUR 200 million           |
--------------------------------------------------------------------------------
| Annual operating profit improvement              | EUR 140 million           |
--------------------------------------------------------------------------------
| Estimated total personnel reduction excluding    | 1 700                     |
| personnel in administration                      |                           |
--------------------------------------------------------------------------------
| Personnel transferred to new maintenance joint   | 1 450                     |
| venture                                          |                           |
--------------------------------------------------------------------------------

Once the full impact of the above actions is realised, by the end of 2010, the  
estimated annual operating profit improvement will be about EUR 140 million.    

For further information, please contact:                                        
Jouko Karvinen, CEO, tel. +358 2046 21410                                       
Hannu Ryöppönen, Deputy CEO and CFO, tel. +358 2046 21450                       
Kari Vainio, EVP, Corporate Communications, tel. +44 7799 348 197               
Keith B. Russell, SVP, Investor Relations, tel. +44 7775 788659                 
Ulla Paajanen-Sainio, VP, Investor Relations and Financial Communications, tel. 
+358 2046 21242                                                                 

PRESS CONFERENCE IN HELSINKI                                                    
CEO Jouko Karvinen will host a press conference in Helsinki regarding the       
improvement plans and future of the Group. The conference will be held in       
Finnish and will not be webcast.                                                

Time: 	11.00 Finnish time                                                       
Location: 	Marina Congress Center                                               
Address: 	Katajanokanlaituri 6, Helsinki                                        
Hosts: 	Jouko Karvinen, CEO                                                     

Local press conferences will be held at Imatra, Kotka and Varkaus in Finland at 
10.15 EET and at Baienfurt in Germany at 13:00 CET and at Kabel in Germany at   
13:30 CET.                                                                      

ANALYST CONFERENCE CALL                                                         
CEO Jouko Karvinen and Deputy CEO & CFO Hannu Ryöppönen will be hosting a       
combined conference call and webcast today at 16.00 Finnish time (15.00 CET,    
14.00 UK time, 9.00 US Eastern time).                                           

If you wish to participate, please dial (quoting ‘Stora Enso'):                 
+44 (0)20 8609 1270 Continental Europe and the UK                              
+46 (0)8 5059 6306 Sweden 
0800 913 153 Finland                                                          
+1 (703) 621 9128 	USA                                                          

The live webcast may be accessed at www.storaenso.com/investors                 

Further details of replay numbers can be found at www.storaenso.com/investors   

A map of the units concerned is available at                                    
http://bmt.storaenso.com/storaensolink.jsp?imageid=080910                       
Please copy the link                                                            
into your web browser.                                                          

www.storaenso.com                                                               
www.storaenso.com/investors                                                     

STORA ENSO OYJ                                                                  


p.p.	Jukka Marttila		Leena Bergqvist