Stora Enso has completed the divestment of its paper production site in Hylte, Sweden, and all related assets to Sweden Timber, a Sweden-based sawmill and planing mill company. The enterprise value of the transaction is approximately Euro 18 million and will result in the reduction of Stora Enso’s annual newsprint paper capacity by 245,000 tonnes. Using 2022 figures as a benchmark, the divestment is expected to reduce Stora Enso’s annual sales by approximately Euro 160 million.
As announced earlier, Stora Enso will book a disposal loss of approximately Euro 35 million, in addition to an impairment loss of Euro 19 million recorded in Q4 2022 in its IFRS operating profit in Q2 2023, as an item affecting comparability. The final value will be subject to closing date adjustments.
The transaction, part of the earlier announced plan to divest four of Stora Enso’s five paper production sites, does not affect Stora Enso’s formed fiber and biocomposite operations located at the Hylte site.
Sweden Timber, a Swedish-owned wood industry 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.
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.
