The divested sites primarily produce corrugated packaging for the supermarket, home renovation, confectionery, and pet food industries in the domestic Russian market
Finnish pulp, paper and forest products maker Stora Enso has sold its three corrugated packaging plants in Russia to local management, following Russia’s invasion of Ukraine.
The firm’s divested facilities include Lukhovitsy, Arzamas and Balabanovo corrugated packaging plants.
Stora Enso said that as a result of the uncertainty in the Russian market, the local ownership and operation will provide a more viable long-term solution for these businesses and their employees.
According to the firm, its annual sales and operational EBIT will not be unaffected by the transaction.
In the first quarter, the company witnessed an impairment loss of €35m due to diminished business prospects for these enterprises.
The transaction’s additional loss under IFRS will be around €55m, mostly due to currency translation adjustments to be recorded at the closing date.
The divested sites in Lukhovitsy, Arzamas, and Balabanovo have around 620 employees. The facilities produce 395 million m² of corrugated packaging annually.
The locations primarily produce corrugated packaging for the supermarket, home renovation, confectionery, and pet food industries in the domestic Russian market.
In March this year, Stora Enso announced to cease all manufacturing and sales in Russia until further notice.
Last month, the firm sold its two sawmills and forest activities in Russia to local management.
In March 2022, the company initiated a process for the sale of its four paper mills: Anjala in Finland, Hylte and Nymölla in Sweden, and Maxau in Germany, as paper is no more a part of its strategic growth plan.