Stora Enso sells the first out of four paper production assets it plans to divests

Stora Enso sells the first out of four paper production assets it plans to divests

(PRESS RELEASE) HELSINKI, 13-Sep-2022 — /EuropaWire/ — Stora Enso (HEL: STERV), a leading provider of renewable solutions in packaging, biomaterials, wooden constructions and paper, has announced the sale of the first out of four paper production assets it plans to divest, as announced earlier this year. The company has just signed an agreement with Schwarz Produktion, part of Schwarz Group, one of the top retailers in the world, for the sale of its Maxau paper production site in Germany. The value of the transaction is in the EUR 210 million range and the deal is expected to close early 2023 and is subject to the respective regulatory approvals.

This transaction is part of the earlier announced plan to divest four of Stora Enso’s five paper production sites. In line with its strategy, Stora Enso’s focus is on long-term growth potential for its renewable products in packaging, building solutions and biomaterials innovations.

“We are very pleased with this agreement, as it fulfils our goal of providing a sustainable long-term future for the Maxau site and its employees. We will continue with the divestment process for the remaining three paper assets; Nymölla, Hylte and Anjala,” says Seppo Parvi, CFO and Head of Paper division at Stora Enso.

Schwarz Produktion is expected to assume ownership for the Maxau site in the beginning of 2023. Schwarz’s plan is to continue paper production at the site, and the 440 employees belonging to the mill organisation at Maxau will be part of the transaction. Stora Enso will continue to operate the Maxau site and serve its supercalendered paper (SC) customers until the closing of the transaction.

The transaction will reduce Stora Enso’s annual SC paper capacity by 530,000 tonnes. Based on the 2021 figures, the divestment is expected to reduce Stora Enso’s annual sales by approximately EUR 250 million. Subject to closing date adjustments, Stora Enso will book a one-time disposal gain of approximately EUR 50 million, in its IFRS operating profit in the first quarter of 2023, considered as an item affecting comparability.

The divestment process continues for the remaining paper sites in Nymölla, Hylte and Anjala with no committed timeline for conclusion. The process has no immediate effect on Stora Enso’s paper operations which continue to serve their respective customers. There is a feasibility study ongoing at the Langerbrugge site for the potential conversion of one of the two paper lines into a containerboard line. Stora Enso continues to serve its Langerbrugge paper customers at least until the end of 2024.

Stora Enso currently has five paper production sites. In total, the Paper division currently employs approximately 2,300 employees. In 2021, Paper division’s net sales amounted to EUR 1,703 million.

BofA Securities acted as Stora Enso’s financial advisor on this transaction.

About Schwarz Produktion

Schwarz Produktion is the umbrella brand for the production companies of Schwarz Group. In total, more than 4,500 employees in the Schwarz Produktion companies produce high-quality food as well as sustainable packaging and materials for the retail companies Lidl and Kaufland. In addition to mineral water and soft drinks, the Schwarz Produktion companies also produce chocolate, dried fruit, baked goods, coffee and ice cream. In addition, three plastic and recycling plants are a central component of a unique PET materials cycle. Further information about Schwarz Group here.

Recent releases about Stora Enso’s paper assets:
29 March 2022: Stora Enso plans to divest four paper sites to focus on strategic growth areas
7 June 2022: Stora Enso assesses growth opportunities in recycled packaging materials with a conversion in Langerbrugge

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, wooden construction and paper, 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 22,000 employees and our sales in 2021 were EUR 10.2 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