After two years of financial losses, global pulp and paper giant Stora Enso is planning to sell four of its five paper production mills to focus on ‘strategic growth areas.’
|For sale: Stora Enso's Anjala paper mill in Finland|
“Stora Enso has initiated a sales process for a possible divestment of four paper production sites,” the Finnish company said in a statement. “In line with Stora Enso’s strategy, paper is not a strategic growth area for the Group. The divestment intent is aligned with the Group’s strategy to focus on long-term growth potential for its renewable products in packaging, building solutions and biomaterials innovations.”
The four paper mills up for sale are: Anjala in Finland, Hylte and Nymölla in Sweden, and Maxau in Germany. Stora says it will keep its mill in Belgium’s Langerbrugge, which produces magazine paper from used cardboard cups.
Stora’s paper division employs about 2,200 people and in 2021 recorded revenue of 1.7 billion euros. If the plants are sold, personnel will be included in the sale, according to a spokesperson.
| 'We will look for new ownership":
Stora Enso CEO Annica Bresky
“Through divesting a majority of our paper assets, we are able to increase the focus on our defined strategic growth areas of renewable packaging, building solutions and biomaterials innovations,” said Stora president and CEO Annica Bresky. “When assessing potential divestment options, we look for new ownership that will provide a sustainable long-term future for the sites and the people that work there.”
Stora Enso has not committed to a deadline for the conclusion of the divestment process, the company said. “The initiated sales process has no immediate effect on Stora Enso’s paper operations which continue to serve their respective customers.”
Stora Enso is a leading global provider of renewable products in packaging, biomaterials, wooden construction and paper, and one of the largest private forest owners in the world. The company has 22,000 employees and total sales in 2021 were EUR 10.2 billion.
Stora Enso's Wood Products division operates five Australian distribution centres located in Melbourne, Brisbane, Adelaide, Sydney and Perth.