The transaction, which forms part of Stora Enso’s strategic plan to divest four of its five paper production sites, is expected to reduce the firm’s annual SC (supercalendered) paper capacity by 530,000 tonnes
The Maxau paper production mill in Germany. (Credit: Stora Enso Oyj)
Stora Enso has closed the sale of its Maxau paper production site in Germany, and all related assets to Schwarz Produktion, a subsidiary of Schwarz Group.
Schwarz Produktion is engaged in the production of high-quality food as well as sustainable packaging and materials for the retail companies Lidl and Kaufland.
Earlier announced in September last year, the transaction was completed after receiving all the necessary regulatory approvals.
The Finland-based paper firm said that the total enterprise value of the transaction is around €210m.
The deal is anticipated to lower the firm’s annual SC (supercalendered) paper capacity by 530,000 tonnes. Stora Enso’s annual sales are expected to reduce by approximately €385m.
Stora Enso will record a one-time disposal gain of approximately €55m in its IFRS operating profit in the first quarter of 2023, subject to closing date adjustments.
The deal is part of Stora Enso’s already disclosed plan to sell four of its five paper manufacturing facilities.
The plan was completed earlier this year when the paper firm agreed to sell its Hylte paper manufacturing facility and halt the sale of the Anjala location.
The Hylte site and all its related assets were sold to Sweden-based sawmill and planing mill company Sweden Timber for an enterprise value of €18m.
In January this year, the ownership of the Nymölla paper site in Sweden was passed to Sylvamo, marking the completion of the divestiture.
In line with its strategy, Stora Enso’s focus is on the long-term growth potential for its renewable goods in packaging, building solutions, and biomaterials innovations.
The Schwarz Produktion companies produce chocolate, dried fruit, baked goods, coffee and ice cream along with mineral water and soft drinks.
Stora Enso provides renewable products in packaging, biomaterials and wooden construction, and is said to be one of the private forest owners in the world.