Stora Enso Decided to Divest Assets at Maxau Site

SEATTLE (Scrap Monster): Stora Enso Oyj announced that it has signed an agreement to divest its Maxau paper production site in Germany, and all related assets to Schwarz Produktion. The enterprise value of the transaction is estimated at around EUR 210 million. The transaction is expected to close in the beginning of 2023, subject to necessary regulatory approvals.

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As per the agreement, Schwarz Produktion will assume ownership for the Maxau site in the beginning of the next year. Schwarz will continue paper production at the site. Upon closing of the transaction, all the 440 employees at the mill site will become part of Schwarz Produktion. Meantime, Stora Enso will continue to operate the Maxau site and serve its supercalendered paper (SC) customers.

The transaction is expected to reduce Stora Enso’s annual SC paper capacity by 530,000 tonnes. The divestment is expected to reduce Stora Enso’s annual sales by approximately EUR 250 million. BofA Securities acted as Stora Enso’s financial advisor.

The company noted that the divestment process is in progress for the remaining paper sites in Nymolla, Hylte and Anjala, although it did not disclose any particular timeline for completion. It is currently conducting a feasibility study on potential conversion of one of the two paper lines into a containerboard line at the Langerbrugge site.