Stora Enso to Exit from Dissolving Pulp Business

SEATTLE (Scrap Monster): Finnish pulp and paper giant Stora Enso announced progress on its plans to globally exit dissolving pulp business. The move is part of the company’s strategic plans to exit from its non-core business segments.

According to company press release, the production of dissolving pulp at the Enocell mill will be halted. Meantime, the production of other types of pulp grades will continue. Incidentally, the dissolving pulp business forms only a small portion of Stora Enso’s overall business.

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The company had conducted a strategic review of its portfolio, with the aim to focus on key business areas such as packaging, wooden construction and biomaterials innovation, which it believes will have immense potentials for future growth. Furthermore, it had concluded that the exit from dissolving pulp business for viscose production is unlikely to have material impact on the company’s financial results.

After the closure of viscose manufacturing factories in China’s Xinjiang region, Stora Enso had stopped supply of pulp and announced plans to stop production of wood pulp in the Finnish city of Joensuu. Traditionally, Finland had been the primary supplier of chemical wood pulp materials for Xinjiang factories.