Stora Enso eyes stock in Balakhna Pulp and Paper
Finnish paper-producer Stora Enso is interested in the possibility of acquiring some of Alfa Group's stock in the Nizhny Novgorod-based Balakhna Pulp and Paper Mill (or Volga), one of Russia's largest producers of newspaper.
NIZHY NOVGOROD. March 15 (Interfax) - Finnish paper-producer Stora Enso is interested in the possibility of acquiring some of Alfa Group's stock in the Nizhny Novgorod-based Balakhna Pulp and Paper Mill (or Volga), one of Russia's largest producers of newspaper.
Company sources have said that a group of Stora Enso specialists visited Volga at the start of this month to familiarize themselves with the setup. The Volga management has not yet said how big the stake Stora Enso is interested in is, but thinks that Alfa Group is unlikely to sell off a controlling stock interest.
The sources noted that the Siberian Aluminum group had earlier engaged in talks with Alfa Group on buying stock in Volga.
Stora Enso is looking to significantly expand its paper-production capacity, and to that end is considering various options for acquiring paper plants in Germany, France and Russia, one company spokesperson noted.
The company Nizhny Newsprint Holding Ltd. (Cyprus) owns 93% of the stock in Volga. Alfa-Eko and the investment company Ost-Vest Group (both part of Alfa Group) each own half the stock in the Cypriot company.