Following the divestment, Schwarz is planning to keep up the paper production at the Maxau mill site. For the time being, Stora Enso will manage the mill and serve its supercalendered paper (SC) customers until the closing of the deal.
September 29, 2022
Stora Enso has inked a contract with Schwarz Produktion, part of Schwarz Group, to divest its Germany-based Maxau paper mill site and all related assets. The enterprise value of the contract is about EUR 210 million. It is expected to be concluded at the beginning of 2023, at the latest, subject to regulatory approvals.
The agreement is part of Stora Enso’s plans to divest four of its five paper mills. In view of this goal, the Finland-based manufacturer’s focus is on the 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 Mr. Seppo Parvi, CFO and Head of Paper division, Stora Enso.
At the beginning of 2023, Schwarz Produktion would possess the ownership of the Maxau mill. After the transition, Schwarz is planning to keep up the paper production at the mill site and retain the 440 people employed at the production. However, Stora Enso will manage the Maxau paper mill and serve its supercalendered paper (SC) customers until the closing of the acquisition.
The SC paper capacity at Maxau paper mill site is 530000 tonne per annum (TPA). As per the 2021 figures, the annual sales at the Maxau mill were approximately EUR 250 million. Subject to closing date adjustments, Stora Enso will have a one-time disposal gain of about EUR 50 million, in its IFRS operating profit in the first quarter of 2023.
Also, in accordance with Stora Enso’s divestment strategies, the remaining paper mill sites in Nymölla, Hylte, and Anjala, are likely to be divested with no decided timeline. Nevertheless, the divestment would have no immediate impact on Stora Enso’s paper operations. Additionally, there is an ongoing feasibility study at the Langerbrugge mill for the potential conversion of one of the two paper lines into a containerboard line.