Displaying items by tag: Stora Enso

stora new1Stora 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). During its 20 years of operation, the city of Suzhou has grown around the mill, making it difficult to develop and continue industrial operations at the current site. The cash consideration for the divestment of assets is approximately EUR 240 million.

The total gain on disposal to be reported in operating profit amounts to approximately EUR 180 million of which EUR 26 million will be recorded as a positive non-recurring item in Stora Enso’s second quarter 2016 results and EUR 154 million is expected to be recorded as a positive non-recurring item in Stora Enso’s fourth quarter 2016 results. The total net gain including the closure related costs after tax will be approximately EUR 150 million.

Production is planned to be stopped during June 2016 and the transaction is expected to be completed in the fourth quarter of 2016. Operational profitability of the mill is close to break even so the transaction will not have a material impact on Stora Enso’s operational EBIT going forward.

“Suzhou Mill is a recognised high quality paper producer with an established customer base. However, the mill only has one paper machine and it will no longer be competitive after the emergence of larger-sized mills in the Chinese market. The location of the mill in the middle of a large city is not favourable for paper production,” says Kati ter Horst, EVP Stora Enso’s Paper division.

Based on annual figures for 2015, the divestment is expected to reduce Stora Enso’s annual sales by EUR 126 million and simultaneously decrease the annual woodfree coated paper production capacity by approximately 240 000 tonnes. Suzhou Mill currently employs approximately 500 people, who will receive support in finding new employment opportunities.

About the buyer

SND is the administration of the Suzhou National New & Hi-tech Industrial Development Area, established in 1992. SND is part of the Suzhou City government. Suzhou City has approximately 11 million inhabitants and borders west Shanghai. SND plans to convert the mill site from industrial use to non-industrial use.

Stora Enso is a leading provider of renewable solutions in packaging, biomaterials, wooden constructions and paper on global markets. Our aim is to replace fossil based materials by innovating and developing new products and services based on wood and other renewable materials. We employ some 26 000 people in more than 35 countries, and our sales in 2015 were EUR 10.0 billion. Stora Enso shares are listed on Nasdaq Helsinki (STEAV, STERV) and Nasdaq Stockholm (STE A, STE R). In addition, the shares are traded in the USA as ADRs (SEOAY) on the International OTCQX over-the-counter market. storaenso.com

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Wednesday, 01 June 2016 08:33

Stora Enso to divest its Kabel Mill in Germany

stora new1Stora Enso has signed an agreement to divest its Kabel coated mechanical paper mill in Germany to Hagen-Kabel Pulp & Paper GmbH, owned by a German based investor group. The transaction is in line with Stora Enso’s strategic transformation into a renewable materials growth company. The transaction is expected to be completed in the third quarter of 2016.

The cash consideration for the divestment of the assets is approximately EUR 23 million, subject to customary closing day adjustments. The loss on disposal amounts in total to EUR 15 million. The effect on operating profit is approximately EUR 5 million, and negative tax impact is approximately EUR 10 million. These will be recorded as a non-recurring item in Stora Enso’s second quarter 2016 results. Approximately EUR 17 million of pension liabilities will be transferred to the new owner with the transaction.

“Kabel Mill has an excellent reputation and an established customer base in the grades it produces. We believe that Kabel Mill will be able to further develop its business under the new ownership,” says Kati ter Horst, EVP Paper division at Stora Enso.

Based on 2015 annual figures, the divestment is expected to reduce Stora Enso’s annual sales by approximately EUR 300 million. It will also reduce Stora Enso’s annual paper production capacity by around 485 000 tonnes. Kabel Mill employs approximately 540 people, who will be transferred to the new owner with the divestment. The transaction will not have a material impact on Stora Enso’s operational EBIT going forward.

Stora Enso will continue to produce coated mechanical paper under the NovaPress brand at its Veitsiluoto Mill in Finland.

About Hagen-Kabel Pulp & Paper GmbH
Hagen-Kabel Pulp & Paper GmbH is a newly-established company owned by a German investor group with experience in the paper industry. One of the investors, Kübler & Niethammer Papierfabrik Kriebstein AG (“K&N”), produces graphical paper with a capacity of approximately 100 000 tonnes per year and recycled paper as raw material. The investor group has stated that it aims to develop the Kabel Mill and focus further on high quality customer service.

Stora Enso is a leading provider of renewable solutions in packaging, biomaterials, wooden constructions and paper on global markets. Our aim is to replace fossil based materials by innovating and developing new products and services based on wood and other renewable materials. We employ some 26 000 people in more than 35 countries, and our sales in 2015 were EUR 10.0 billion. Stora Enso shares are listed on Nasdaq Helsinki (STEAV, STERV) and Nasdaq Stockholm (STE A, STE R). In addition, the shares are traded in the USA as ADRs (SEOAY) on the International OTCQX over-the-counter market. www.storaenso.com

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Stora Enso's consumer board machine at Beihai Mill in China successfully started production on 26 May. The first consumer board on reel was produced 18 months after the start-up of Stora Enso's large-scale mill construction project in Beihai, Guangxi region.

stora new1The project started from a greenfield site. In addition to the board machine, it includes a full site with infrastructure, power plant, water and effluent treatment capacities. Highest levels of work safety standards have been followed. With a peak of 5 500 workers on site, over 16 million working hours have been accomplished with only one Lost Time Accident.

“Today I feel very proud and happy for the whole team that has been able to achieve such a great milestone in the history of Stora Enso,” says Stora Enso’s CEO Karl-Henrik Sundström. “Our aim now is to benefit from the growing demand in China and Asia Pacific for high-quality consumer board.”

The total investment in the project is EUR 800 million, including a bleached chemi-thermomechanical (BCTMP) pulp mill with an annual capacity of 220 000 tonnes, operational in the fourth quarter of 2016. The board machine is expected to reach full production within 18‒24 months. In full operation, the mill will have an annual capacity of 450 000 tonnes of liquid packaging board and other high-grade paperboard products.

The official inauguration will be held on 16 June 2016, at the Beihai Mill.

Stora Enso is a leading provider of renewable solutions in packaging, biomaterials, wooden constructions and paper on global markets. Our aim is to replace fossil based materials by innovating and developing new products and services based on wood and other renewable materials. We employ some 26 000 people in more than 35 countries, and our sales in 2015 were EUR 10.0 billion. Stora Enso shares are listed on Nasdaq Helsinki (STEAV, STERV) and Nasdaq Stockholm (STE A, STE R). In addition, the shares are traded in the USA as ADRs (SEOAY) on the International OTCQX over-the-counter market. storaenso.com

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ÅF has been commissioned by Stora Enso to build a new lean gas system at Skutskär Mill to reduce sulphur emissions and improve the smell in the surrounding area. The assignment is an end-to-end solution worth about SEK 10 million. The new system is expected to be operational in autumn 2017.

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The assignment includes project management, process design, piping design, electricaland automation, construction and fire safety.

“A major technical challenge is finding an optimal process design that connects the dispersed odorous gases in the factory to a pipe system for combustion,” says Stefan Hännestrand, project manager at ÅF. “This project requires expertise and collaboration between disciplines.”

In addition to a new lean gas system, ÅF was entrusted to modernise the control systems on the roll cutters at Skutskär Mill, a project that has been ongoing since 2015.

ÅF was also recently commissioned by Stora Enso to plan a new chemical plant at Skoghall Mill.

For further Information:

Stefan Hännestrand, project manager, ÅF, +46 (0)10 505 86 88, This email address is being protected from spambots. You need JavaScript enabled to view it..
Lars Olsson, account manager, ÅF, +46 (0)10 505 87 12, This email address is being protected from spambots. You need JavaScript enabled to view it..

ÅF is an engineering and consulting company for the energy, industrial and infrastructure markets, creating progress for our clients since 1895. By connecting technologies we provide profitable,  innovative and sustainable solutions to shape the future and improve people's lives. Building on our strong base in Europe, our business and clients are found all over the world. 

ÅF – Innovation by experience.

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Renewable materials company Stora Enso and specialty chemicals company Rennovia Inc have announced a joint development and license agreement to cooperate on bio-based chemicals development.

Under the terms of the agreement, the two companies will cooperate to develop processes for bio-based chemicals of interest to Stora Enso, employing Rennovia’s high-throughput catalyst discovery infrastructure and process development expertise. Rennovia focuses on the technology development of novel catalysts and processes for the cost advantaged production of chemicals from renewable feedstocks.

stora new1As Stora Enso is targeting new markets and developing novel products as it transforms into a renewable materials company, the agreement is a logical step for the company.

“The joint development and technology agreement will accelerate some of the developments Stora Enso is working on and gives us a solid platform to move further in building a portfolio of sustainable bio-based solutions for our customers. We are looking forward to collaborating with Rennovia,” said Juan Carlos Bueno, Executive Vice President, Biomaterials division at Stora Enso.

“This agreement underscores the broad applicability of Rennovia’s catalytic technologies to the production of a wide range of bio-based chemical products,” said Robert Wedinger, President and CEO of Rennovia. “We are delighted that Stora Enso recognizes our catalyst and process technologies as an efficient, cost-effective platform for producing bio-based chemicals.”

About Stora Enso Biomaterials division
Stora Enso Biomaterials division is a provider of pulp grades to meet the demands of various paper, board and tissue producers. The offering also includes fluff for hygiene applications and dissolving pulp for the textile industry. The mission of Stora Enso Biomaterials division is to find new, innovative ways to maximise the value extractable from wood, as well as other kind of ligno-cellulosic biomasses.

About Rennovia
Rennovia is a chemical process technology development company focused on the creation of novel processes for the cost advantaged production of commodity and specialty chemicals from renewable feedstocks. For further information, visit www.rennovia.com or e-mail This email address is being protected from spambots. You need JavaScript enabled to view it..

Juan Carlos Bueno, EVP, Stora Enso Biomaterials division, tel. +55 11 3065 5223

Stora Enso is a leading provider of renewable solutions in packaging, biomaterials, wooden constructions and paper on global markets. Our aim is to replace fossil based materials by innovating and developing new products and services based on wood and other renewable materials. We employ some 26 000 people in more than 35 countries, and our sales in 2015 were EUR 10.0 billion. Stora Enso shares are listed on Nasdaq Helsinki (STEAV, STERV) and Nasdaq Stockholm (STE A, STE R). In addition, the shares are traded in the USA as ADRs (SEOAY) on the International OTCQX over-the-counter market. storaenso.com

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Finnish Minister of Agriculture and the Environment, Kimmo Tiilikainen, today joined Stora Enso at the official inauguration of a containerboard machine and a wooden building element production line at the Varkaus Mill.

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Stora Enso has successfully converted a fine paper machine at Varkaus Mill to produce virgin-fibre-based containerboard. Stora Enso invested EUR 110 million in the conversion work, which took place in 2015. Kraftliner production began in October 2015 and full production is expected in early 2017. The capacity of the Varkaus Mill will be about 390 000 tonnes of light-weight kraftliner per year.

Moreover, Stora Enso has built a new production line in Varkaus Mill that will make wooden building elements, laminated veneer lumber (LVL). The investment of EUR 43 million will further enhance Stora Enso’s position as a global provider of high quality engineered wooden elements. The production is scheduled to begin in June 2016, and the estimated yearly capacity will be around 100 000m3.

“Both investments in Varkaus are part of Stora Enso’s transformation into a customer-focused renewable materials company,” says Karl-Henrik Sundström, CEO of Stora Enso. “By converting the fine paper mill into a kraftliner mill we are responding to the increasing global market need for renewable packaging, while the new LVL production line will meet the growing need for sustainable wood products for construction and industrial applications.”

The renewed mill directly employs some 400 people and the estimated total employment impact for the Varkaus region is 1 600 FTEs. The investments in Varkaus will increase the demand for softwood raw material by about 1.3 million cubic metres.

Stora Enso is a leading provider of renewable solutions in packaging, biomaterials, wooden constructions and paper on global markets. Our aim is to replace fossil based materials by innovating and developing new products and services based on wood and other renewable materials. We employ some 26 000 people in more than 35 countries, and our sales in 2015 were EUR 10.0 billion. Stora Enso shares are listed on Nasdaq Helsinki (STEAV, STERV) and Nasdaq Stockholm (STE A, STE R). In addition, the shares are traded in the USA as ADRs (SEOAY) on the International OTCQX over-the-counter market. storaenso.com

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stora new1Stora Enso has decided to commence a feasibility study with the aim of expanding containerboard production at Ostrołęka Mill in Poland by 500 000 tonnes annually. The findings of a recently completed pre-feasibility study supported continuation of the process. The feasibility study, which is expected to be completed by the end of 2016, will evaluate the profitability of the possible expansion. The studied investment will be cost competitive and it has synergies with the newest containerboard machine in Ostrołęka, which went into production in 2013.

If the investment is approved following the feasibility study, the capital expenditure for the expansion is estimated to be in the range of EUR 350-400 million over a couple of years.

Stora Enso’s long term investment criteria is to keep the capital expenditure into fixed assets approximately at the same level as depreciation. The planned investment at Ostrołęka Mill would fit this frame. In addition to fixed asset investments, Stora Enso invests approximately EUR 100 million annually in biological assets.

“Poland is a large and growing market where we have a strong presence and customer base. Stora Enso regularly conducts feasibility studies to explore potential expansion opportunities. The decision regarding a possible expansion at Ostrołęka Mill will be made once the assessment is completed,” says Gilles van Nieuwenhuyzen, EVP Division Packaging Solutions.

For further information, please contact:
Carl Norell, SVP Communications, Division Packaging Solutions, tel. +46 722 410 349

Stora Enso is a leading provider of renewable solutions in packaging, biomaterials, wooden constructions and paper on global markets. Our aim is to replace fossil based materials by innovating and developing new products and services based on wood and other renewable materials. We employ some 26 000 people in more than 35 countries, and our sales in 2015 were EUR 10.0 billion. Stora Enso shares are listed on Nasdaq Helsinki (STEAV, STERV) and Nasdaq Stockholm (STE A, STE R). In addition, the shares are traded in the USA as ADRs (SEOAY) on the International OTCQX over-the-counter market. storaenso.com

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Stora Enso has completed the earlier announced divestment of its ownership in the Arapoti Mill in Brazil. The divestment supports Stora Enso's transformation into a renewable materials growth company.

stora new1The divestment of Stora Enso’s entire 80% shareholding in the Arapoti magazine paper mill to Papeles Bio Bio, a Chilean paper producer, has been completed. The divestment plan was announced on 31 December 2015.

The consideration for the divestment of the shares is approximately EUR 17 million. The loss on disposal amounts to approximately EUR 59 million of which EUR 31 million was recorded as a non-recurring item in Stora Enso’s fourth quarter 2015 results. The remaining approximately EUR 28 million is a cumulative translation adjustment loss, which will be recorded as a negative non-recurring item on operating profit in Stora Enso’s first quarter 2016 results, as announced earlier.

The transaction reduces Stora Enso’s net debt by approximately EUR 12 million. Based on 2015 annual figures, the transaction decreases Stora Enso’s sales by approximately EUR 100 million.

Arapoti Mill is the only producer of coated magazine paper (LWC) in South America. The majority of its production is sold to the domestic market and the rest to other Latin American countries. The mill has an annual production capacity of 185 000 tonnes of LWC, and it employs 320 people.

Stora Enso is a leading provider of renewable solutions in packaging, biomaterials, wood and paper on global markets. Our aim is to replace non-renewable materials by innovating and developing new products and services based on wood and other renewable materials. We employ some 26 000 people in more than 35 countries, and our sales in 2015 were EUR 10.0 billion. Stora Enso shares are listed on Nasdaq Helsinki (STEAV, STERV) and Nasdaq Stockholm (STE A, STE R). In addition, the shares are traded in the USA as ADRs (SEOAY) on the International OTCQX over-the-counter market. storaenso.com

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Stora Enso is investing a total of approximately EUR 63 million to further improve competitiveness in strategic growth areas in China and Sweden in the Consumer Board and Biomaterials divisions.

stora new1Stora Enso will invest EUR 31 million in a new polyethylene (PE) coating line in the new consumer board mill in Beihai, China. The Beihai Mill is expected to be in operation during the second quarter of 2016, as communicated earlier. The investment will enhance Stora Enso’s strategy for profitable growth and supports competitiveness by enabling short lead-times and full quality control for PE-coated prime Food Service Board (FSB). The investment is expected to be completed in mid-2017.

Stora Enso is also investing EUR 16 million in a new chemical plant at the consumer board mill in Skoghall, Sweden to further improve the environmental performance of the mill. The investment is expected to be completed by the end of 2017.

In the Biomaterials division, Stora Enso is investing EUR 16 million to improve the environmental performance by reducing sulphur emissions of its mill in Skutskär, Sweden. The investment is expected to be completed by the end of 2017.

The investments will further enhance Stora Enso’s transformation into a global renewable materials growth company. EUR 31 million of these investments are part of the group’s 2016 capital expenditure forecast, which amounts to EUR 680–720 million as communicated earlier.

For further information, please contact:
Ulrika Lilja, EVP, Communications, tel. +46 1046 71668

Stora Enso is a leading provider of renewable solutions in packaging, biomaterials, wood and paper on global markets. Our aim is to replace non-renewable materials by innovating and developing new products and services based on wood and other renewable materials. We employ some 26 000 people in more than 35 countries, and our sales in 2015 were EUR 10.0 billion. Stora Enso shares are listed on Nasdaq Helsinki (STEAV, STERV) and Nasdaq Stockholm (STE A, STE R). In addition, the shares are traded in the USA as ADRs (SEOAY) on the International OTCQX over-the-counter market. storaenso.com

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Friday, 19 February 2016 09:07

Getting ready at Beihai Mill

beihai

Stora Enso has two paper mills in China, as well as core factories, production and distributing units through the packaging company Inpac. The Beihai consumer board mill project is the first time the company has started building a mill on an empty field in China.

Stora Enso’s large-scale mill construction project of a consumer board mill in Beihai, Guangxi region, China, is getting closer to completion. The board machine is expected to be operational in the second quarter, and the project is proceeding according to plan. ​

The idea of establishing a complete production chain in Guangxi, from raw material to end product, came in 2006. Already, Stora Enso had been establishing sustainable eucalyptus plantations in Guangxi since 2002. Then in 2012, we announced the plan to build a world-class integrated consumer board mill in China, to provide excellent service with cost-competitive, locally produced high quality liquid packaging boards on a regional basis for global key customers.

Today, the Beihai Mill is well underway.
 
More than a machine
A project like this is not only about building a mill, although that in itself is a massive operation with thousands of employees and contractors on-site.  It is also about recruiting the most capable work force in China, ensuring training and knowledge-sharing between Beihai Mill and Stora Enso’s Nordic mills, mapping the markets in-depth, planning sales, strengthening customer relations, and preparing for the best logistics routes and partners for deliveries. Naturally, it is important that all the sales and support functions are set when the consumer board machine goes operational.

Jari Latvanen, Executive Vice President, Division Consumer Board stresses the significance of the project: “The Beihai operations will add considerable value to our business in Asia. We see great opportunities for growth and building on our relationships with key customers in high quality end-uses.”

An important part in the project has also been to make Stora Enso better known in the surrounding communities and to cooperate with local authorities, universities, organisations and villagers to find long-term sustainable solutions for development.

During 2015, the progress in the mill construction was tremendous. It is even more impressive considering the high level of work safety that Stora Enso has been able to instill. In October 2015, the project could celebrate 10 million working hours without Lost Time Accidents, contractors included.
 
When ready, this state-of-the-art mill will have the capacity of 450 000 tonnes consumer board per year.

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