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Stora Enso to Increase Plantations, Land in China

Sept. 25, 2006 - Stora Enso said that it has signed a contract with Beihai city in Guangxi province, China, to secure fiber resources.

Under the contract, from 2006-2008 Beihai city will provide Stora Enso with a total of 30,813 hectares of plantation and land through purchasing existing plantations and establishing new plantations on forestland.

Stora Enso currently has about 60,000 hectares of hardwood industrial plantations and land usage rights in southern Guangxi. The company said it intends to create a sustainably managed fiber base of 160,000 hectares of plantation land by 2010 to support the establishment of an integrated pulp and paper mill in Guangxi in the long term.

"The plantations and land that Beihai city will provide for Stora Enso form an integral part of the whole fiber base portfolio that will be of the utmost importance to successful forest, pulp and paper integration in Guangxi," said Elisabet Salander Björklund, senior executive vice president, Stora Enso Forest Products.

Stora Enso said it had the United Nations Development Program (UNDP) carry out an Environmental and Social Impact Assessment (ESIA) of the Guangxi plantations in 2005 and 2006, and the assessment found that there are no major environmental or social issues that could have an impact on the company's plantation project in Guangxi.

SOURCE: Stora Enso




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