Stora Enso Divested Packaging Operations in Russia
Paper Recycling | 2022-05-17 13:13:20
The divested sites together employ approximately 620 people and have a total corrugated packaging capacity of 395 million square metre per year.
By Paul Ploumis
SEATTLE (Scrap Monster): Helsinki, Finland-headquartered manufacturer of pulp, paper and other forest products, Stora Enso, announced its decision to divest its packaging operations in Russia.
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The news release published yesterday by the company says that it has divested its three corrugated packaging plants in Russia. Accordingly, the company’s Lukhovitsy, Arzamas and Balabanovo packaging plants have been divested to local management. Stora Enso assessed that local ownership and operation will provide a more sustainable long-term solution for these businesses and its employees, especially in the wake of uncertainties in Russian market.
The divested sites together employ approximately 620 people and have a total corrugated packaging capacity of 395 million square metre per year. These sites primarily serve the domestic Russian grocery, home improvement, confectionery and pet food markets. Earlier in April this year, the company had divested its two sawmills and forest operations in Russia to local management.
The transaction is unlikely to have any material impact on the company’s annual sales and operational EBIT. It must be noted that an impairment loss of EUR 35 million was recorded along with Q1 results.
