Capacities: Stora Enso to close and divest Suzhou paper mill
(Helsinki, June 15, 2016) Stora Enso has signed an agreement to divest the key assets of its Suzhou Mill in China for approximately €240 million.
Stora Enso has signed an agreement to divest the key assets of its Suzhou Mill in China, including the land-use rights and buildings, to the local government of Suzhou National New & Hi-tech Industrial Development Area (SND). The cash consideration for the divestment of assets is approximately €240 million.
Based on annual figures for 2015, the divestment is expected to reduce Stora Enso’s annual sales by €126 million and simultaneously decrease the annual woodfree coated paper production capacity by approximately 240,000 tonnes. Suzhou Mill currently employs approximately 500 people.
Production is planned to be stopped during June 2016 and the transaction is expected to be completed in the fourth quarter of 2016. (Source: press release via EUWID)