Stora Enso divests its sawmills and forest operations in Russia

Stora Enso has entered into an agreement to divest its two sawmills in Russia. The Company’s Nebolchi and Impilahti sawmills will be divested to local management. In addition, the divestment includes Stora Enso’s Russian forest operation which through its harvesting supplies wood to the sawmills.

The transaction is, pending necessary approvals, expected to be concluded within Q2 2022 and will have no material impact on Stora Enso’s annual sales and Operational EBIT. Due to decreased business prospects on these businesses, an impairment loss of €70 million has been recorded in the first quarter result. The additional loss on the transaction under IFRS will be approximately €60 million, consisting mainly of currency translation adjustments to be recorded at the closing date. The expenses are considered as items affecting comparability.

The sawmill sites are located in Novgorod and Karelia employing approximately 330 people and have a total annual capacity of 350,000 m³ of sawn timber, including 55,000 m³ of processed timber and 65,000 tonnes of pellets. Stora Enso’s Russian forest operations employs approximately 170 people and manages long-term harvesting rights for around 370,000 hectares.

According to WhatWood, Russian sawn timber production at Stora Enso’s sawmills in 2020 was 310,000 m³.