SEATTLE (Scrap Monster): Stora Enso announced that it has signed an agreement to divest its paper production site in Hylte, Sweden and all related assets to Sweden Timer- a leading local sawmill and planing mill company. The transaction, whose enterprise value is estimated at around $18 million, is expected to complete during the first half of the current year.
Stora Enso Completed Sale of Swedish Nymolla Paper Site
Stora Enso Announced Completion of Imatra Mills Upgrade
The divestment of the Hylte site is expected to reduce the company’s annual sales by approximately EUR 90 million. The transaction will force Stora Enso to book a disposal loss of approximately EUR 35 million, subject to closing date adjustments. It must be noted that the company had recorded an impairment loss of EUR 19 million in Q4 last year. The formed fiber and biocomposite operations located at the will not be affected by the divestment, said the company press release.
Also, the company has decided to discontinue the divestment process at the Anjala paper site in Finland.
The above transactions will conclude the company’s divestment plan announced in March last year, to divest four out of the five paper production sites.
Seppo Parvi, CFO, Stora Enso noted that Sweden Timber will continue to serve Hylte’s paper customers by further developing the operations. The benefits of retaining the Anjala site exceeds the value of explored divestment opportunities, he added.
|Copper Scrap View All|
|#1 Copper Bare Bright||3.72 (0.02)|
|Aluminum Scrap View All|
|356 Aluminum Wheels (Clean)||0.80 (0)|
|6061 Extrusions||0.71 (0)|
|Steel Scrap View All|
|#1 Bundle||350.00 (0)|
|#1 Busheling||370.00 (0)|
|Electronics Scrap View All|
|Cellular Phones||4.25 (0)|
|Computer/Server (Complete)||0.34 (0)|