Stora Enso intends to enter into a long-term wood supply agreement for 18 years with the "New Company", with non-exclusive volumes available for other customers increasingly over the duration of the agreement.
Nov. 14, 2025 - Following a strategic review of its Swedish forest assets business, Stora Enso's Board of Directors has decided to initiate preparations for the separation of that business into a new publicly-listed company (the "New Company") through a statutory partial cross-border demerger, expected to be completed during the first half of 2027. All shares in the new company would be wholly owned by Stora Enso's shareholders.
Stora Enso first announced the strategic review of its Swedish forest assets on June 18, 2025 as part of its stronger focus on renewable materials and packaging.
Stora Enso's major shareholders Solidium Oy and FAM AB, holding in the aggregate approximately 21% of the shares and approximately 55% of the voting rights in Stora Enso, support the contemplated demerger.
According to the assessment of the Board of Directors, the demerger of the Swedish forest assets business into the New Company would be the best alternative to unlock the full potential of both the Swedish forest assets and Stora Enso's core packaging business as well as to optimise capital allocation and reduce complexity.
Moreover, the demerger will enable enhanced focus on the respective companies' core strengths and market opportunities, thus allowing the respective businesses to be assessed on their own merits — maximising operational and shareholder value.
"We are excited to now enter the next phase of this important chapter in our company's history. The demerger will create a solid foundation for independent growth of both companies," said Hans Sohlström, President and CEO of Stora Enso. "Moreover, the two companies would maintain a strategic relationship, where Stora Enso gains access to a long-term wood supply agreement with the new company, securing revenues for both parties."
The New Company will emerge as Europe's largest listed pure play forest company, owning a distinct class of assets with expected long-term value appreciation for example, from a naturally growing standing stock. Additionally, the expected stable cash flow generation with additional potential for significant new revenue streams, would provide investors with an opportunity to receive stable inflation-resilient forest returns with low correlation to other asset classes over the business cycle.
Swedish forest assets have over the last 30 years had a total return of approximately 7% per annum (1). The New Company is positioned for additional long-term opportunities of incremental value creation through, among other things, an advanced forest management, land holding value optimisation actions, renewable energy initiatives and carbon sequestration.
Tuomas Hallenberg, currently Executive Vice President of Stora Enso's Forest business area, has been appointed President and CEO of Stora Enso's Swedish forest business.
The relationship between the New Company and Stora Enso will remain strategically important. In connection with the demerger process, Stora Enso intends to enter into a long-term wood supply agreement for 18 years with the New Company, with non-exclusive volumes available for other customers increasingly over the duration of the agreement. The agreement will provide the New Company with a committed demand base as it grows its own customer base, lowering the risk. The wood prices will be set at market-based rates.
In addition to the intended wood supply from the New Company, which would currently represent approximately 9% of Stora Enso's wood and fiber supply in the Nordics region, Stora Enso will retain strategic vertical integration through its other forest assets.
(1) Total returns comprise of land appreciation, standing stock net volume growth and annual harvest return. Figures based on historical data between 1990 to 2023.
Stora Enso is a leading provider of renewable products in packaging, biomaterials, and wooden construction, and one of the largest private forest owners in the world.
SOURCE: Stora Enso