Stora Enso Reached Agreement to Divest Hylte Paper Production Site

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.

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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.