Stora Enso to rebuild Kabel PM 4

12/30/1999 7:19 AM EST

Stora Enso is to invest EUR 16.5 million in a rebuild of Kabel mill's
magazine paper machine no. 4 in Germany. The project will start in January
2000; start-up of the rebuilt machine is expected in January 2001.

The rebuild is a further stage in Kabel's strategic programme for
improving the mill's competitiveness. The programme began with a rebuild
of paper machine no. 5 that has already been completed. The overall
objective is to increase the mill's production capacity from the present
570,000 t.p.a. to 625,000 tonnes per annum.

The rebuild of PM 4 will result in a production increase of 12,000 t.p.a.
Apart from structural modifications to the paper machine, the project
includes the provision of an additional reel wrapping machine.

Kabel mill which is located in Hagen, Germany, belongs to Stora Enso
Magazine Paper Division and produces ultra lightweight, lightweight and
medium weight coated papers.

For further information, please contact:
Mr Eberhard Potempa, Managing Director, Kabel Mill, tel. +49 2331 699 300

Stora Enso Oyj, one of the world's leading forest products companies, is
listed on the Helsinki and Stockholm stock exchanges. Stora Enso focuses
on the production of magazine papers, newsprint, fine papers and packaging
board. The Group holds a leading global position in these product areas.
Stora Enso also conducts extensive sawmilling operations. Stora Enso has
annual sales of approximately EUR 10 billion, with some 40,000 employees
in more than 40 countries.