SWEDEN – Finnish forestry group Stora Enso has completed the divestment of its Nymölla paper production site in Sweden and all associated assets to the US-based uncoated paper producer Sylvamo.
Announced in September, the divestment transaction was closed after receiving regulatory approvals for an enterprise value of around US$159.13 million (€150m).
Stora says that the move will allow it to narrow its focus to expanding its renewable packaging portfolios, biomaterial innovations, and building solutions.
With a capacity of 485,000 metric tonnes of woodfree uncoated office papers, the Nymölla site provides for Enso’s leading brand Multicopy.
It is thought that the divestment will reduce the company’s annual sales by around US$ 307.65 million (€290m), and subject to closing date adjustments, Stora Enso is expected to book a one-time disposal loss of around US$ 26.52 million (€25m) – including currency translation adjustments – in its IFRS operating profit at the beginning of 2023.
Four of its five paper production sites are expected to be transferred on to other companies to make room for its own sustainable development.
Its remaining paper sites in Hylte and Anjala are currently in the divestment process, yet there are no confirmed end dates for these processes. None are expected to impact Stora Enso’s paper operations.
Headquartered in Memphis, Tennessee, Sylvamo has mills in Europe, Latin America, and North America that converts renewable resources into papers for education, communication, and entertainment uses. The firm employs more than 7,500 people.
Early last month, Stora Enso also unveiled its plans to sell its consumer board production site in Beihai, China, and the Group’s forestry operations in the surrounding region.
The divestment would also include the Group’s forestry operations in the surrounding region, which supply raw materials to the Beihai site.
According to the company, the plans back the firm’s goal to focus on long-term profitable growth within sustainable packaging, building solutions, and biomaterials advance sectors.
The divestment of the Beihai operations would allow Stora Enso to accelerate its strategy by focusing on cost-efficient sites serving the growing global packaging market, such as the recently announced investment in Oulu, Finland and the pending acquisition of De Jong Packaging Group.
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