Name: Hans Sohlström
Previous title: Member of the board of directors
New title: President and CEO
"I look forward to working together with my new colleagues in leading our profit turn-around, increasing shareholder value and delivering on our commitment as the renewable materials company," said Sohlström in an announcement from the Finnish packaging company on Monday.
Sohlström spent more than two years on Stora Enso’s board, but will no longer serve in that capacity as president and CEO. His career has spanned positions at investment firms and forest and fiber-based materials companies. He recently served as president and CEO of Ahlstrom, another Finland-headquartered fiber products company that serves food and consumer packaging markets.
In the announcement, Chair of the Board of Directors Kari Jordan highlighted Sohlström’s “extensive experience in the forest industry” and described him as “the right person to lead Stora Enso through the current challenging market environment towards achieving the long-term financial goals.”
In June, Stora Enso announced restructuring plans after months of financial troubles, targeting “assets suffering from challenged profitability” as well as “a more streamlined headquarter organisation.” The restructuring is expected to boost operating earnings before interest and taxes by 110 million euros annually. In the second quarter, the company recorded operating profit of -253 million euros.
The restructuring plans entail 1,150 layoffs over a year and the closing of certain pulp production, containerboard and sawmill sites in Europe. The company also said it was affected by Russia stopping wood imports. In an update this month, Stora Enso said changes so far would result in the reduction of 710 employees.