In a statement, the company says it plans to convert the mill into a packaging board production plant, and close the paper and sheeting production line completely.

Last summer the Finnish-Swedish company had said it would need to look at the Oulu mill's operational feasibility, as there had been a drop in global demand for the type of paper made at the facility.

Although Stora Enso will likely invest €350 million in new equipment to add production capability for a new type of cardboard, the plant will need fewer workers in future. The amount of investment is half of what they had initially indicated for the mill.

Negotiations on redundancies are expected to last for six weeks, with the job cuts and new expenditure on equipment at the plant set to be completed in 2020.