Stora Enso Completes Sale of Hylte Paper Production Site, Reducing Annual Sales by EUR 160 Million

Stora Enso Completes Sale of Hylte Paper Production Site, Reducing Annual Sales by EUR 160 Million

(IN BRIEF) Stora Enso has completed the sale of its paper production site in Hylte, Sweden, and all related assets to Sweden Timber, a Sweden-based sawmill and planing mill company. The sale is part of Stora Enso’s previously announced plan to divest four of its five paper production sites. The sale of the Hylte site is expected to reduce Stora Enso’s annual sales by approximately EUR 160 million. The company will book a disposal loss of approximately EUR 35 million, in addition to an impairment loss of EUR 19 million. The sale does not affect Stora Enso’s formed fiber and biocomposite operations located at the Hylte site. Stora Enso’s strategy is to focus on the long-term growth potential of its renewable products in packaging, building solutions, and biomaterials innovations.

(PRESS RELEASE) HELSINKI, 4-Apr-2023 — /EuropaWire/ — Stora Enso (HEL: STERV), a leading provider of renewable solutions in packaging, biomaterials, wooden constructions and paper, announces that it has completed the sale of its paper production site in Hylte, Sweden, including all related assets, to Sweden Timber, a Sweden-based sawmill and planing mill company. The transaction’s enterprise value is approximately EUR 18 million and will lead to a reduction of Stora Enso’s annual newsprint paper capacity by 245,000 tonnes. Using 2022 figures as a benchmark, the sale is expected to reduce Stora Enso’s annual sales by approximately EUR 160 million.

As previously announced, Stora Enso will book a disposal loss of approximately EUR 35 million, in addition to an impairment loss of EUR 19 million recorded in Q4/2022 in its IFRS operating profit in Q2/2023 as an item affecting comparability. The final value is subject to closing date adjustments.

The sale is part of Stora Enso’s previously announced plan to divest four of its five paper production sites. The plan was concluded on January 27, 2023, with the sale of the Hylte site and the discontinuation of the divestment process of the Anjala paper production site in Finland. The Nymölla paper site in Sweden was sold on January 2, with ownership transferred to Sylvamo. The Maxau paper site in Germany was sold on March 1 to Schwarz Produktion. Stora Enso’s Paper division was discontinued as of January 1, 2023, with the retained Langerbrugge (Belgium) and Anjala paper production sites being integrated into the Packaging Materials division reporting.

The divestment plan does not affect Stora Enso’s formed fiber and biocomposite operations located at the Hylte site. Going forward, Stora Enso’s strategy is to focus on the long-term growth potential of its renewable products in packaging, building solutions, and biomaterials innovations.

About Sweden Timber
Sweden Timber is a Swedish-owned and growing wood industry company. The company produces and sells high-quality wood products to the construction industry and wood retailers, with customers in several export markets. The business today consists of sawmills and planing production sites in four Swedish locations, Malmbäck, Hjortkvarn, Skillingaryd and Mora. More information on Sweden Timber here: swedentimber.se

For further information, please contact:
Carl Norell
Press officer
tel. +46 72 241 0349

Investor enquiries:
Anna-Lena Åström
SVP Investor Relations
Tel. +46 70 210 7691 

Part of the global bioeconomy, Stora Enso is a leading provider of renewable products in packaging, biomaterials and wooden construction, and one of the largest private forest owners in the world. We believe that everything that is made from fossil-based materials today can be made from a tree tomorrow. Stora Enso has approximately 21,000 employees and our sales in 2022 were EUR 11.7 billion. Stora Enso shares are listed on Nasdaq Helsinki Oy (STEAV, STERV) and Nasdaq Stockholm AB (STE A, STE R). In addition, the shares are traded in the USA as ADRs (SEOAY). storaenso.com/investors

SOURCE: STORA ENSO OYJ

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