Displaying items by tag: Stora Enso

On 9 October, Brigl & Bergmeister withdrew its application to the German Federal Cartel Office for approval of the merger with the Uetersen paper mill.

b b logoIn May 2014, Brigl & Bergmeister GmbH signed an agreement for acquisition of the Uetersen speciality paper mill from the Stora Enso Group, subject to merger control approval.

Already in September, the German Federal Cartel Office (FCO) expressed reservations against the merger. Both parties subsequently submitted further conclusive market information and expert reports, none of which, however, managed to persuade the FCO to change its stance. Consequently, Brigl & Bergmeister withdrew the merger application on 9 October 2014.

The contracting parties have mutually agreed to cancel the share purchase agreement.

Brigl & Bergmeister regret the decision made by the FCO. The label market would have benefited substantially from the acquisition of the Uetersen paper mill. The merger would have created a strong group of speciality paper mills and provided positive impulses throughout the entire value chain.

At the two locations in Austria and Slovenia, Brigl & Bergmeister manufacture wet-strength and non-wet strength label papers as well as flexible packaging papers.               

related article : Stora Enso’s Uetersen Mill buyer withdraws application for merger


BRIGL & BERGMEISTER

B&B is the leading manufacturer of label papers and flexible packaging papers. Annually, some 100 billion labels are printed on B&B papers, and our papers bear the face of innumerable famous brands.

The Brigl & Bergmeister plant is located at the heart of Europe, in Niklasdorf in Styria | Austria.

ENAGES, the thermal recycling plant of Brigl & Bergmeister, supplies the factory with 100% CO2-neutral energy in the form of steam and electricity.

The Papirnica Vevče factory is situated in Slovenia, in the greater area of Ljubljana. A cooperation that had originally started as a joint venture has developed into a fully-fledged partnership. Since 2004, Papirnica Vevče has been a 100% subsidiary of Brigl & Bergmeister.

Brigl & Bergmeister, ENAGES as well as Papirnica Vevče are part of the Vienna-based Roxcel group of companies.

Published in European News

stora new1As earlier communicated, Stora Enso signed an agreement in May 2014 to divest its Uetersen specialty and coated fine paper mill in Germany to Brigl & Bergmeister, an Austrian specialty paper producer. Stora Enso recorded a negative non-recurring item of approximately EUR 34 million related to the planned disposal in the second quarter 2014 operating profit.

In September, the German Federal Cartel Office (FCO) indicated intentions to prohibit the proposed merger. Despite further evidence provided by the parties to clear the concerns of the FCO, the authorities’ assessment remained. Consequently, Brigl & Bergmeister withdrew the application for the merger on 9 October. The parties have agreed to terminate the share purchase agreement.

As a consequence, Stora Enso will reverse the loss on disposal of approximately EUR 28 million as a positive non-recurring item in its third quarter 2014 operating profit.

Stora Enso will now evaluate its options, which may include divestment or restructuring of the loss-making Uetersen Mill. This process does not affect the speciality paper production at Imatra Mill or the coated fine paper production at Oulu Mill in Finland.

Realated article : Competition authority prevents acquisition of Uetersen paper mill

For further information, please contact:
Ulrika Lilja, Executive Vice President Communications, tel. +46 72 221 9228
Ulla Paajanen-Sainio, Head of Investor Relations, tel. +358 40 763 8767

www.storaenso.com
www.storaenso.com/investors


Stora Enso is the global rethinker of the paper, biomaterials, wood products and packaging industry. We always rethink the old and expand to the new to offer our customers innovative solutions based on renewable materials. Stora Enso employs some 29 000 people worldwide, and our sales in 2013 amounted to EUR 10.6 billion. Stora  Enso shares are listed on NASDAQ OMX Helsinki (STEAV, STERV) and Stockholm (STE A, STE R). In addition, the shares are traded in the USA as ADRs (SEOAY) in the International OTCQX over-the-counter market.

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stora new1Stora Enso has signed an agreement to divest its Corenso business operations to the Finnish packaging materials company Powerflute Oyj. The enterprise value of the transaction is approximately EUR 90 million, and the expected all cash consideration approximately EUR 75 million. Closing of the transaction is expected to take place during the fourth quarter 2014 subject to customary conditions. The transaction's impact on Stora Enso's income statement will be approximately break-even.

Corenso is part of Stora Enso Renewable Packaging Division. Stora Enso is focusing on selected packaging segments in Packaging Solutions and Consumer Board and further developing and investing in these businesses. The divestment is a natural step in streamlining the business and transforming Stora Enso into a customer-focused renewable materials company in growth markets.

“We have now found a good new owner for Corenso who we believe can give the company the attention it deserves and develop it further. By divesting Corenso, Stora Enso can better focus on its strategic direction,” says Hannu Alalauri, SVP Packaging Solutions, Stora Enso Renewable Packaging.

Corenso is one of the world’s leading integrated producers of high-performance cores and high-quality coreboard. It employs about 920 employees in 10 countries in Europe, Asia and North America and has its head office in Lahti, Finland. In 2013 Corenso’s net sales were EUR 211 million and operational EBIT EUR 26 million.

For further information, please contact:

Ulla Paajanen-Sainio, SVP Investor Relations, Stora Enso, tel. +358 40 763 8767
Tommy Borglund, SVP Communications, Stora Enso Renewable Packaging, tel. +46 1046 71709

www.storaenso.com/investors
renewablepackaging.storaenso.com

Stora Enso is the global rethinker of the paper, biomaterials, wood products and packaging industry. We always rethink the old and expand to the new to offer our customers innovative solutions based on renewable materials. Stora Enso employs some 29 000 people worldwide, and our sales in 2013 amounted to EUR 10.6 billion. Stora Enso shares are listed on NASDAQ OMX Helsinki (STEAV, STERV) and Stockholm (STE A, STE R). In addition, the shares are traded in the USA as ADRs (SEOAY) in the International OTCQX over-the-counter market.

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stora new1Following its recent acquisition of the US-based biotechnology company Virdia, Stora Enso is investing EUR 32 million (USD 43 million) in a demonstration and market development plant to be built at Raceland, Louisiana, USA. The plant will be used for industrial validation of the newly acquired extraction and separation technology developed by Virdia that enables cellulosic biomass, such as wood or agricultural waste, to be converted into highly refined sugars. The investment serves the feasibility of the technology on industrial scale in the future, possibly also in some of Stora Enso’s existing pulp mills.

The demonstration plant will be located in the vicinity of existing sugar cane plantations and will use bagasse waste as feedstock.  Sugar cane bagasse is a sustainable, non-genetically-modified  feedstock that does not compete with food. It will be used to produce high purity five-carbon sugars and in particular xylose. These sugars will be converted and upgraded for applications in, for example, food and personal care.

“This investment marks the next step in our strategy for new markets and applications. It will enable validation of the technology developed by Virdia and its applicability to different types of biomass. Our goal is to develop and commercialise cost-effective renewable solutions to address well-identified market-driven needs and add value to our current cellulosic streams,” says Juan Carlos Bueno, EVP, Stora Enso Biomaterials.

The Raceland demonstration plant is scheduled to start production early 2017.

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“Strong quarterly performance - the transformation journey continues”

karl henrik storaJouko Karvinen, Stora Enso CEO until 31 July 2014, comments:

“The second quarter came out at the high end of our expectations, essentially driven by the better than expected performance of Renewable Packaging and by the Company’s 22% overachievement of the EUR 200 million annual structural cost reduction target. Those achievements combined with the significant improvements in earnings in Printing and Reading and in Building and Living are yet another proof point of the resilience and fighting spirit of the Stora Enso people. As regards Biomaterials, I am happy to see that the ramp-up of Montes del Plata is at, if not beyond, the industry standards.

As this is my last quarterly report after seven years at the helm of the Company, I also want to say a sincere thank you to all our stakeholders for the seven challenging but also rewarding years. So much more remains to be done, but I am confident the same strong interest and support that I have experienced will continue for Stora Enso and its new CEO Karl-Henrik Sundström in transforming Stora Enso into a global renewable materials company.

Finally let me say that I am very happy to hand over the CEO role to Karl-Henrik Sundström. In his two years with the Company he has demonstrated business acumen, strategic thinking and people focus. I am confident that with the great people of Stora Enso, he will do well on the journey to the future.”

Karl-Henrik Sundström, Stora Enso CEO from 1 August 2014:

“I am very honoured to have been trusted to lead Stora Enso. It is exciting to continue on the chosen path and build the future of the Company together with our competent and committed employees. One of my short-term priorities is to build a winning team which can take us forward. Due to the strategic importance of sustainability issues, I will also put more resources into the corporate responsibility area. Currently, I am deepening my knowledge of Stora Enso’s packaging and biomaterials offering, as this business is partly new to me.

Stora Enso’s transformation into a company with increased customer focus goes on. We will continue to deliver value through the Montes del Plata Pulp Mill in Uruguay and our consumer board machine investment in Guangxi, China. The acquisition of the biotechnology company Virdia and the conversion of the Varkaus Mill fine paper machine in Finland to produce virgin-fibre-based containerboard are yet further examples. It is all about winning, together with our customers, today and tomorrow.”

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karl henrik storaStora Enso’s Board of Directors has appointed Karl-Henrik Sundström, 54, as the new CEO of the Company as of 1 August 2014. He is currently Executive Vice President and Head of the Printing and Living Division of Stora Enso.

“Karl-Henrik Sundström has wide global experience in manufacturing industry and a solid background in financial management. As an internal choice, he brings continuity to the management of the Company and to the strategic path the Company has chosen,” says Chairman of the Board of Directors Gunnar Brock.

“During my  two years with Stora Enso I have got to know a company with a strong market position and great potential. I am looking forward to continuing to build the future of Stora Enso together with the whole team of competent and committed employees around the world,” says the new CEO Karl-Henrik Sundström.

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stora new1Stora Enso is postponing the reorganisation of its Renewable Packaging Division that was announced on 21 March 2014 and was originally intended to be implemented as of 1 July 2014.

Following Jouko Karvinen’s decision to leave his position as CEO and today’s announcement of the appointment of Karl-Henrik Sundström as the new CEO, it has been decided to postpone the reorganisation until the CEO transition has been completed. Until the reorganisation is implemented, the Renewable Packaging Division businesses will continue to report to the CEO.

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stora pulpStora Enso has awarded Pöyry with the assignment for the engineering and site services for the pulp mill rebuild and paper machine conversion project at its Varkaus Mill in Finland. The assignment relates to the pulp mill rebuild, paper machine conversion, upgrading of existing utilities, and includes detail and civil engineering as well as site services as an option. The assignment is a continuation of the pre-feasibility and the feasibility studies performed by Pöyry during 2013.

The conversion work is expected to be undertaken mainly during autumn 2015 and the board machine is scheduled to start up during the fourth quarter of 2015. The current 280 000 tonnes per year uncoated fine paper machine is planned to cease production by the end of August 2015. Following the conversion into a board machine, Varkaus Mill's capacity will be about 390 000 tonnes per year of kraftliner and white top liner and 310 000 tonnes of unbleached kraft pulp. 

"This project is a continuation of the long co-operation between Stora Enso and Pöyry, and strengthens Pöyry's position as the world's leading pulp and paper engineering consultancy, having delivered projects for 80% of the world's major pulp and paper companies", says Nicholas Oksanen, President of Pöyry's Pulp and Paper Global Competence Line.

The value of the order is not disclosed. The order will be recognised within the Industry Business Group order stock in Q2.

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logo en alta mdp ofStora Enso’s and Arauco’s joint operation Montes del Plata Pulp Mill at Punta Pereira in Uruguay has received all necessary permits from the Uruguayan authorities and is now starting up its operations.

The state-of-the-art pulp mill has an annual production capacity of 1.3 million tonnes of bleached chemical eucalyptus pulp. The pulpwood comes mainly from Montes del Plata’s own sustainably managed plantations. In addition to producing pulp, the mill will be more than self-sufficient in energy made from biomass, producing yearly around 160 MW, of which approximately 70 MW will be sold to the national grid. The mill site has its own deepwater port for pulp exports as well as a barge wharf for incoming wood to minimise the amount of truck traffic on Uruguayan roads.

montes stora pulp mill

“Montes del Plata is a long-term investment, and it will be a very profitable mill, despite the delays in the construction process. We are now focusing all our efforts on achieving a smooth start-up and fast ramp-up to get the mill into full production,” says Juan Carlos Bueno, EVP, Stora Enso Biomaterials.

Stora Enso’s share of Montes del Plata pulp, 650 000 tonnes per year, will be sold as market pulp.

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Celulosa y Energía Punta Pereira S.A. (“CEPP”), a joint-venture company in the Montes del Plata group formed by Stora Enso and Arauco, has been notified of arbitration proceedings initiated against it by Andritz Pulp Technologies Punta Pereira S.A., a subsidiary of Andritz AG, claiming EUR 200 million. The arbitration relates to contracts for the delivery, construction, installation, commissioning and completion by Andritz of major components of the Montes del Plata pulp mill project located at Punta Pereira in Uruguay. CEPP disputes the claims brought by Andritz and will also actively pursue claims of its own against Andritz for breach by Andritz of its obligations under the contracts.

No provisions have been made concerning the arbitration proceedings.

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