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The divestment of consumer board and forestry operations in Beihai aims ‘to increase resource allocation to sites with economies of scale which serve a global and growing packaging market including China’
“During the fourth quarter, we also started a process to divest our consumer board and forestry operations in Beihai in China,” reads Stora Enso Oyj Financial Statement Release 2022. The divestment will be conducted separately or as a combined unit with no timeline for the conclusion of the process. The company retains J.P. Morgan S.E to act as its financial advisor in the sales.
In 2022, Stora Enso sold €11,680m worth of products (up 17% to 2021). The company invested one billion euros in the acquisition of the Dutch packaging manufacturer De Jong Packaging Group and another billion in the upgrade of cartonboard production at Oulu in Finland. Stora Enso also discontinued its Paper division with the divestment of the Nymölla paper site (Sweden) and pending sale of Maxau (Germany /UPD: The deal was finalised on March 1, 2023/) and Hylte (Sweden) sites.
Stora Enso’s Beihai production site started operations in 2016. It has a modern mechanical pulp mill and a premium consumer board line serving the Chinese market. The annual production capacity is 250,000 tonnes of mechanical pulp and 550,000 tonnes of consumer board.
The company also operates 70,000 hectares of land in the Guangxi region for eucalyptus plantations, established in 2003, for fiber supply.
The combined operations employ approximately 1,000 people including the forest operations.
Stora Enso owns approximately 80% of the production site and forest operations, and its local partners and International Finance Corporation (IFC) own the remaining share. Stora Enso is going to work together with all stakeholders to complete the divestment process.