Stora Enso has completed its strategic review of its Swedish forest assets and plans to separate the business into an independent, publicly listed company.
The proposed demerger, expected in the first half of 2027, would create Europe’s largest listed pure-play forest company, with 1.2 million hectares of forest land valued at EUR 5.7 billion as of September 2025.
The Board concluded that a separation offers the clearest route to unlocking value in both businesses: the forest assets on one side, and Stora Enso’s renewable packaging and biomaterials operations on the other. Major shareholders Solidium Oy and FAM AB, representing roughly 21% of shares and 55% of voting rights, support the plan.
The forest business would be headquartered in Falun, Sweden, and listed on Nasdaq Helsinki and Nasdaq Stockholm. Shareholders of Stora Enso would receive shares in the new company in proportion to their current holdings. The existing A and R share structure would remain unchanged.
Why the split?
The demerger follows several months of analysis and the sale of about 175,000 hectares earlier this year for EUR 900 million. According to the Board, the separation will allow each business to focus on its core strength:
- the new forest company on long-term asset value, stable cash flows and opportunities in forest management, renewable energy and carbon sequestration;
- Stora Enso on renewable materials and packaging, with a more streamlined industrial structure and improved capital allocation.
Historical returns of Swedish forest assets—about 7% annually over the past 30 years—underline the long-term potential of the new entity.
Leadership and long-term supply agreement
Tuomas Hallenberg, Executive Vice President of Stora Enso’s Forest business area, has been appointed President and CEO of the Swedish forest business ahead of the planned separation.
Stora Enso intends to secure an 18-year wood supply agreement with the new company. The arrangement would provide predictable demand for the forest company while preserving Stora Enso’s access to Nordic fibre under market-based pricing.
What happens next?
The demerger is subject to regulatory approvals, a shareholder vote and various legal and consultation processes across several countries. Stora Enso expects to publish the formal demerger plan in the second half of 2026.
The company will outline additional details at its Capital Markets Day in London on 25 November 2025, including updated strategic goals for both the planned forest company and its remaining industrial operations.
Stora Enso is a global producer of renewable materials with operations in packaging, biomaterials and wooden construction. The company is also one of the largest private forest owners in the world. In 2024, Stora Enso employed about 19,000 people and recorded EUR 9 billion in sales. Its shares are listed on Nasdaq Helsinki and Nasdaq Stockholm, with additional trading in the US OTC Markets.
Souce: Stora Enso
