Stora Enso considers public listing of Swedish Forest Assets in strategic overhaul

SWEDEN – Finnish pulp and paper giant Stora Enso has launched a strategic review of its Swedish forest holdings, exploring a potential partial demerger and public listing of the assets as a standalone company.

If executed, the move could create two independent entities: one focused on renewable packaging and the other poised to become Europe’s largest listed pure forest company.

The proposed separation is part of Stora Enso’s long-term effort to sharpen its strategic focus, simplify operations, and maximize shareholder value.

The new forest company, if listed, would remain fully owned by Stora Enso’s current shareholders and would manage over 1.2 million hectares of forestland in Sweden, valued at approximately €5.8 billion (US$6.68bn) as of March 2025.

These forest assets, although essential for Stora Enso’s raw material supply, have distinct operational and financial dynamics that make them suitable for independent development.

This latest initiative follows Stora Enso’s 2023 sale of 175,000 hectares of forestland for €900 million (US$1 billion), signaling the company’s evolving approach to asset optimization.

CEO and President Hans Sohlström stated, “Initiating this strategic review underscores our commitment to maximizing shareholder value while ensuring alignment with our long-term strategic objectives.

“By evaluating various strategic options, we aim to enhance business focus, reduce complexity, and unlock the full potential of both our forest and industrial assets.”

FAM, one of Stora Enso’s largest shareholders, supports the proposed evaluation. FAM CEO Håkan Buskhe commented, “A potential separation and public listing of the Swedish forest assets would create two leading companies—one of the world’s leading global renewable packaging companies and Europe’s largest listed pure forest company.”

If realized, the move would echo similar restructuring strategies seen in the industry. For example, in 2013, Finnish forest firm UPM-Kymmene divested its timber operations to focus on higher-margin bio-based materials.

Likewise, Mondi Group in 2022 announced the spin-off of its Russian operations to sharpen its sustainable packaging focus.

These shifts reflect a broader industry trend toward greater specialization and unlocking hidden asset value.

Stora Enso, which recently expanded its industrial operations with the May 2025 acquisition of Finnish sawmill firm Junnikkala Oy, expects to provide an update on the outcome of the forest asset review by the end of 2025.

The company’s restructuring efforts come as it seeks to lead in both renewable packaging and sustainable forestry amid tightening environmental expectations and evolving global markets.

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