Stora Enso has completed the divestment of its Nymölla paper production site in Sweden, and all related assets to Sylvamo, a US-based global producer of uncoated paper.
The divestment announced on 15 September 2022 was closed today after regulatory approvals. The enterprise value of the transaction is approximately EUR 150 million.
The Nymölla site’s capacity is 485,000 metric tonnes of woodfree uncoated office papers, with Multicopy as the leading paper brand. Based on the 2021 figures, the divestment is expected to reduce Stora Enso’s annual sales by approximately EUR 290 million. Subject to closing date adjustments, Stora Enso will book a one-time disposal loss of approximately EUR 25 million (including currency translation adjustments) in its IFRS operating profit in the first quarter of 2023, as an item affecting comparability.
This transaction is part of the earlier announced plan to divest four of Stora Enso’s five paper production sites. In line with its strategy, Stora Enso’s focus is on long-term growth potential for its renewable products in packaging, building solutions and biomaterials innovations.
The divestment process continues for the remaining paper sites in Hylte and Anjala with no committed timeline for conclusion. The process has no immediate effect on Stora Enso’s paper operations which continue to serve their respective customers.
Sylvamo (NYSE: SLVM) is a global paper company with mills in Europe, Latin America and North America. It transforms renewable resources into papers that people depend on for education, communication, and entertainment. Headquartered in Memphis, Tennessee, Sylvamo employs more than 7,500 people. Net sales for 2021 were $3.5 billion. For more information, please visit sylvamo.com.
Recent releases about Stora Enso’s paper assets:
15 September 2022: Stora Enso has signed an agreement to divest its Nymölla paper site to Sylvamo
13 September 2022: Stora Enso has signed an agreement to divest its Maxau paper site to Schwarz Produktion
7 June 2022: Stora Enso assesses growth opportunities in recycled packaging materials with a conversion in Langerbrugge
Part of the global bioeconomy, Stora Enso is a leading provider of renewable products in packaging, biomaterials, wooden construction and paper, and one of the largest private forest owners in the world. We believe that everything that is made from fossil-based materials today can be made from a tree tomorrow. Stora Enso has approximately 22,000 employees and our sales in 2021 were EUR 10.2 billion. Stora Enso shares are listed on Nasdaq Helsinki Oy (STEAV, STERV) and Nasdaq Stockholm AB (STE A, STE R). In addition, the shares are traded in the USA as ADRs (SEOAY). storaenso.com
Source: Stora Enso