Finland's Stora Enso to close two paper mills

Finnish forestry company Stora Enso on Tuesday said it will permanently close two paper mills citing decreasing demand for paper in Europe.

Stora Enso will initiate cooperation negotiations with 440 employees at the Veitsiluoto mill in northern Finland and 670 employees at the Kvarnsveden mill in central Sweden.

"There is significant overcapacity in the European paper market and both mills are loss-making," the company said in a statement.