Monday, June 22, 2015 8:45 am

Stora Enso announced that it plans to permanently shut down corrugated packaging converting unit in Chennai, India, due to unprofitability and a major decrease in local market demand.

The mill employs 350 people, who will receive compensation and other support, the company said.

The company said the total negative impact on its operating profit in the second quarter of 2015 will be approximately 8 million Euros, mainly related to a restructuring provision. Excluding the one-time impact, the closure will not have a material impact on Stora Enso's sales and operational EBIT, the company said.

The packaging unit in Chennai has been part of Stora Enso since July 2011, following the group's acquisition of 51% of the shares in Inpac International in China.