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Stora Enso

(SEO)

said it will close down its unprofitable Reisholz Mill in Germany and Berghuizer Mill in the Netherlands, resulting in the layoff of 675 workers.

The Helsinki-based paper company said Summa Mill in Finland and Uetersen Mill in Germany will remain in operation while further improving their financial performance.

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Reisholz Mill, which produces improved super-calendered papers, has a total annual production capacity of 215,000 tons. Berghuizer Mill, which is part of Stora Enso's Fine Paper division, is planned to be closed during 2007. The mill, which produces copy and printing paper, has capacity of 235,000 tons.

Stora Enso will record total provisions and write-downs related to the planned closures of 270 million euros ($338 million) in the third quarter.