Stora Enso signed an agreement to divest its 35% holding in the equity accounted investment Bulleh Shah Packaging Ltd. (BSP) to the main owner Packages Ltd. According to the announcement, the transaction is expected to be completed in 3Q2017.
Karl-Henrik Sundström, Stora Enso CEO, commented:
“Stora Enso is focusing its strategy on delivering profitable growth. Due to a changing business environment in Pakistan, the Bulleh Shah Packaging asset with its product mix and related future outlook is a non-strategic fit in our consumer board roadmap. Our focus is on high quality virgin-fibre products. We are committed to make a responsible divestment and intend to leave a positive contribution in the society.”
The cash consideration for the divestment of the shares is EUR 6 million. The loss on disposal amounts in total to approximately EUR 19 million. These will be recorded as items affecting comparability (IAC) in Stora Enso’s third quarter 2017 results.
Earlier Stora Enso decided to invest EUR 45 million in a new production unit for cross laminated timber at its Gruvön Mill in Sweden.
About Stora Enso:
The company is the global company operating in segments of the paper, biomaterials, wood products and packaging industry. The company has annual production capacity of 5.4 million tonnes of chemical pulp, 11.7 million tonnes of paper and board, 1.3 billion square metres of corrugated packaging and 5.6 million cubic metres of sawn wood products, including 2.9 million cubic metres of value-added products. Its sales in 2015 totaled EUR 10 billion.The Group has some 26 000 employees in more than 35 countries worldwide. It is a publicly traded company listed in Helsinki and Stockholm.