Stora Enso finalized the divestment of its Hylte, Sweden, paper division site on January 27, 2023, to Sweden Timber, a sawmill and planing company. The divestment was the last among the four planned. The company will book a disposal loss of approximately EUR 35 million, in addition to an impairment loss of EUR 19 million, booked in Q4/22 against the operating profit of Q2/23.
April 04, 2023
Stora Enso divested its Hylte, Sweden, paper production site and all related assets to Sweden Timber, a sawmill and planing mill company. The divestment was finalized on January 27, 2023, at an enterprise value of approximately EUR 18 million, and will not affect Stora Enso’s formed fiber and biocomposite operations located at the Hylte site. On the same date, Stora Enso announced discontinuing the divestment process of the Anjala, Finland, paper production site.
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Post-divestment, Stora Enso’s annual newsprint paper capacity will reduce by 245,000 tonnes, and annual sales, based on 2022 figures, will reduce by approximately EUR 160 million. Stora Enso will book a disposal loss of approximately EUR 35 million, with the final value subject to closing date adjustments. The company booked an impairment loss of EUR 19 million in Q4/2022, as an item affecting comparability, in its IFRS operating profit in Q2/2023.
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Stora Enso has earlier announced to divest four of its five paper division sites as part of its strategy to focus on the long-term growth potential for its renewable products in packaging, building solutions, and biomaterials innovations. Stora Enso’s Paper discontinued its paper division as of January 1, 2023, and integrated Langerbrugge, Belgium, and Anjala sites into its packaging materials division reporting. The divestment of the Nymölla, Sweden, to Sylvamo was completed on January 2, and Maxau, Germany, to Schwarz Produktion on March 1.