Stora Enso Divests its Ownership in IL Recycling in Sweden
Stora Enso said that its need for paper for recycling in Sweden has decreased during the past years and needed volumes can be sourced from the market.
April 8, 2016 - Stora Enso has signed an agreement to divest its 33.33% ownership in the Swedish recycled materials company IL Recycling AB to Stena Metall AB, a Swedish recycling company. The consideration for the divestment of shares is approximately SEK 236 million (EUR 26 million), subject to customary closing day adjustments.
Closing of the deal is subject to approval by competition authorities.
Stora Enso explained that its need for recycled paper in Sweden has decreased during the past years and the needed volumes can be sourced from the market.
The company said that it has negotiated an agreement for the supply of recycled paper with Stena Metall, and the group's focus is to secure the same volumes as currently purchased via IL Recycling to its Hylte Mill in Sweden.
Stora Enso uses paper for recycling in its production at four paper mills and two packaging mills in Europe.
IL Recycling AB is a Swedish recycled materials company owned by Stora Enso, Fiskeby Board, SCA, and Smurfit Kappa. Stena Metall is now purchasing the shareholding of all the current owners.
The Stena Metall Group recycles and processes metals, paper, electronics, hazardous waste and chemicals.
Stora Enso produces chemical pulp, paper and board, corrugated packaging, and sawn wood products, including value-added products. To learn more, please visit: www.storaenso.com
SOURCE: Stora Enso