Finnish paper mill firm Stora Enso has completed the sale of its Nymölla paper production site in Sweden and all associated assets to the US-based uncoated paper producer Sylvamo.
Announced in September, the divestment transaction was closed after receiving regulatory approvals for an enterprise value of around EUR 150m.
With Multicopy as the paper brand, the Nymölla plant has a capacity of 485,000 metric tonnes of woodfree uncoated office papers.
The deal is anticipated to lower Stora Enso’s yearly revenues by about EUR 290m based on the 2021 projections.
Stora Enso will record a one-time disposal loss of about EUR 25m in its IFRS operating profit in the first quarter of 2023 as an item impacting comparability, subject to closing date adjustments.
This deal is a part of the already disclosed scheme to sell four of Stora Enso’s five paper manufacturing facilities.
Stora Enso focuses on the long-term growth potential for its renewable goods in packaging, building solutions, and biomaterials innovations per its business plan.
There is no set deadline for the completion of the divestment process for the remaining paper sites in Hylte and Anjala.
The paper activities, which continue to serve their separate customers, are unaffected by the procedure, the pulp and paper firm said.
Headquartered in Memphis, Tennessee, Sylvamo has mills in Europe, Latin America, and North America that converts renewable resources into papers for education, communication, and entertainment uses. The firm employs more than 7,500 people.
Last month, the paper firm unveiled its plans to sell its consumer board production site in Beihai, China, and the Group’s forestry operations in the surrounding region.
The plans back the firm’s goal to focus on long-term profitable growth within sustainable packaging, building solutions, and biomaterials advance sectors.