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Rubber and Wood April 26, 2022 11:15:50 PM

Stora Enso Decided to Divest Russian Sawmills and Forest Operations

Paul Ploumis
ScrapMonster Author
The transaction is expected to be completed by second quarter this year, subject to necessary regulatory approvals.

Stora Enso Decided to Divest Russian Sawmills and Forest Operations

SEATTLE (Scrap Monster): Pulp and paper industry company Stora Enso Oyj announced that it has entered into an agreement to divest its two sawmills in Russia. Consequently, the company’s Nebolchi and Impilahti sawmills will be divested to local management. In addition, the company has also decided to divest its Russian forest operations, the harvesting of which supplies wood to the sawmills.

The divestment decision follows the assessment by the company that local ownership and operation can provide a more sustainable long-term solution for the Russian business operations and the employees working there, especially on account of prevailing market uncertainties in the region.

ALSO READ: Stora Enso Declared Divestment of Multiple Paper Production Sites

The transaction is expected to be completed by second quarter this year, subject to necessary regulatory approvals. It is unlikely to have any material impact on the company’s annual sales and operational EBIT.

Stora Enso’s sawmill sites are located in Novgorod and Karelia. These sites together employ nearly 330 people and have a total annual capacity of 350,000 cubic metre of sawn timber, including 55,000 cubic metre of processed timber and 65,000 tonnes of pellets. Also, The Russian forest operations employ approximately 170 people.

Earlier in March this year, the company had announced to stop all production and sales in Russia until further notice.

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