Stora Enso Agrees to Sell Uetersen Paper Mill in Germany to Brigl & Bergmeister
Uetersen Mill has an annual production capacity of about 240,000 tonnes of specialty and coated fine paper.
May 8, 2014 - Stora Enso has signed an agreement to divest its Uetersen specialty and coated fine paper mill in Germany to Brigl & Bergmeister, an Austrian specialty paper producer.
The cash consideration for the divestment of the shares is EUR 10 million. The loss on disposal amounts to approximately EUR 30 million and will be recorded as a non-recurring item in Stora Enso’s second quarter 2014 results.
The transaction is in line with Stora Enso’s strategic transformation to a value-creating renewable materials company focusing on growth markets.
The transaction is expected to be completed in mid-July 2014.
The transaction will enhance Stora Enso’s operational EBIT and cash flow from the third quarter of 2014. Based on 2013 annual figures, the divestment is expected to reduce Stora Enso’s annual sales by EUR 155 million. It will also reduce Stora Enso’s working capital by EUR 10 million and annual paper production capacity by around 240,000 tonnes.
Uetersen Mill employs approximately 400 people.
Stora Enso will continue to produce specialty papers at Imatra Mill and coated fine paper at Oulu Mill in Finland.
Brigl and Bergmeister is a producer of specialty paper for the beverage and food industry. The company has paper mills in Niklasdorf (Austria) and Vevce (Slovenia) and a combined capacity of 198,000 tonnes of label and flexible packaging paper.
Stora Enso produces chemical pulp, paper and board, corrugated packaging, and sawn wood products, including a variety of value-added products. To learn more, please visit the company's website: www.storaenso.com
SOURCE: Stora Enso