SEATTLE (Scrap Monster): Stora Enso announced that it has signed an agreement to divest its Nymölla paper production site in Sweden, and all related assets to U.S.-based Sylvamo. The enterprise value of the transaction is estimated at around EUR 150 million. The closing is expected by early-2023, subject to necessary regulatory approvals.
The sale is in line with the earlier announced strategy by the company to divest four out of its total five paper production sites. Last week, the company had signed an agreement to divest its Maxau paper production site in Germany and all related assets to Schwarz Produktion for an enterprise value of around EUR 210 million. In addition, the divestment process in in progress for Hylte and Anjala paper sites.
Sylvamo plans to integrate the Nymolla site into their global paper business. Currently, the site has a production capacity of 485,000 metric tonnes of woodfree uncoated office papers. All the 520 unionised employees at Nymölla will be part of the transaction. Meantime, the sustainable textile fiber company TreetoTextile will not be part of the transaction and will continue to operate at the site, the company press release said.
Seppo Parvi, CFO and Head of Paper division at Stora Enso noted that the company is pleased to have found a good, experienced owner in Sylvamo for its Nymolla site.
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