Stora Enso buys land in China for possible mill site
April 30, 2007 (Press Release) - Stora Enso said that it has signed a mill site land acquisition agreement with Beihai City Government in Guangxi, China. The agreement will provide Stora Enso a total of 250 hectares of industrial land for possible future use as a mill site. The mill site is by the sea in the Tieshangang Industrial Zone of Beihai City in the north of Beibu Gulf in the South China Sea, near Vietnam.
The purchase price is about EUR 27 million.
Stora Enso's Board of Directors has taken no formal decision concerning investment in a mill at Beihai. However, this acquisition would facilitate a future investment. A prerequisite for the investment decision is that the acquisition of land use rights develops in a way that will secure a sufficient fibre base.
The area has suitable soil and a favourable climate for eucalyptus plantations. It is intended to create a sustainably managed fibre base of 160 000 hectares to support establishment of an integrated pulp and paper/board mill in Guangxi. Stora Enso's development of the plantations in Guangxi began in 2002.
To ensure sustainable development of its plantations in China, Stora Enso invited the United Nations Development Programme (UNDP) to carry out an Environmental and Social Impact Assessment (ESIA) of the Guangxi plantations in 2005 and 2006. The assessment found that there are no major environmental or social issues that could have an impact on Stora Enso's plantation project in Guangxi.
SOURCE: Stora Enso