Stora Enso Concludes Sale of Hylte Paper Site to Sweden Timber, Continuing Its Paper Division Divestment Plan
Stora Enso has successfully finalized the sale of its paper production facility in Hylte, Sweden, along with all associated assets, to Sweden Timber, a Swedish company specializing in sawmill and planing mill operations. The transaction’s enterprise value is approximately EUR 18 million, and it will result in a reduction of Stora Enso’s annual newsprint paper production capacity by 245,000 tonnes. Based on 2022 figures, this divestment is expected to lead to a decrease in Stora Enso’s annual sales by approximately EUR 160 million.
Stora Enso will record a disposal loss of approximately EUR 35 million, in addition to an impairment loss of EUR 19 million that was previously recognized in Q4/2022, affecting the company’s IFRS operating profit in Q2/2023. The final value may be subject to closing date adjustments. This divestment, part of the company’s earlier plan to sell four of its five paper production sites, does not impact Stora Enso’s formed fiber and biocomposite operations situated at the Hylte site.
The paper division divestment plan was concluded on January 27, 2023, when Stora Enso announced its agreement to sell the Hylte site and discontinue the divestment process for the Anjala paper production site in Finland. The sale of the Nymölla paper site in Sweden was completed on January 2, with ownership transferred to Sylvamo, while the divestment of the Maxau paper site in Germany to Schwarz Produktion was concluded on March 1. Stora Enso’s Paper division was discontinued as of January 1, 2023, and the retained Langerbrugge (Belgium) and Anjala paper production sites have been integrated into the Packaging Materials division’s reporting.
In alignment with its strategic focus, Stora Enso’s future efforts will concentrate on the long-term growth potential of its renewable products in packaging, building solutions, and biomaterials innovations.