Stora Enso has signed an agreement to divest its Kabel coated mechanical paper mill in Germany to Hagen-Kabel Pulp & Paper GmbH, owned by a German based investor group. The transaction is expected to be completed in the 3Q 2016, as the company says in the press release received by Lesprom Network.
The cash consideration for the divestment of the assets is approximately Euro 23 million, subject to customary closing day adjustments. The loss on disposal amounts in total to Euro 15 million. The effect on operating profit is approximately Euro 5 million, and negative tax impact is approximately Euro 10 million.
Based on 2015 annual figures, the divestment is expected to reduce Stora Enso’s annual sales by approximately Euro 300 million. It will also reduce Stora Enso’s annual paper production capacity by around 485,000 tonnes.
Kabel Mill employs approximately 540 people, who will be transferred to the new owner with the divestment. The transaction will not have a material impact on Stora Enso’s operational EBIT going forward.
Stora Enso will continue to produce coated mechanical paper under the NovaPress brand at its Veitsiluoto Mill in Finland.
