Stora Enso to Divest Wolfsheck Mill in Germany
Aug. 25, 2006 - Stora Enso said that it has signed an agreement to divest its Wolfsheck Mill to Rohner AG of Switzerland, a subsidiary of the German finance investment company ARQUES Industries AG.
The mill produces wallpaper base, SC and specialty grades.
The transaction is an asset deal and the purchase price is one euro, Stora Enso said. The company will record impairment and restructuring provisions totalling approximately EUR -47 million in the third quarter as non-recurring items, with no material net cash impact. The 194 employees will be transferred to the new owner.
Divestment of Wolfsheck Mill will reduce the annual sales of Stora Enso's Publication Paper division by approximately EUR 65 million and the working capital by approximately EUR 8 million. The divestment will enhance the Group's future operating profit.
Wolfsheck Mill is located approximately 50 km southwest of Karlsruhe in Germany and is part of Stora Enso Publication Paper division.
The mill has two paper machines with annual capacity of approximately 155,000 tonnes: one machine with 65,000 tonnes capacity produces wallpaper base, the other is being gradually transferred from SC (supercalendered magazine paper) to specialty paper grades.
ARQUES Industries is a turnaround specialist that focuses on the acquisition and the active restructuring of companies in transitional situations, in order to develop these, with its own team and own resources, to competitive enterprises with a positive yield.
SOURCE: Stopra Enso