Stora Enso divests its Wolfsheck Mill to ARQUES
STORA ENSO OYJ Stock Exchange Release 28 August 2006 at 15.30
Stora Enso divests its Wolfsheck Mill to ARQUES Stora Enso has signed an agreement to divest its Wolfsheck Mill to Rohner AG of Switzerland, a subsidiary of the German finance investment company ARQUES Industries AG. The transaction is an asset deal and the purchase price is one euro. The Group will record impairment and restructuring provisions totalling approximately EUR -47 million in the third quarter as non- recurring items, with no material net cash impact. The 194 employees will be transferred to the new owner. Divestment of Wolfsheck Mill will reduce the annual sales of Stora Ensos Publication Paper division by approximately EUR 65 million and the working capital by approximately EUR 8 million. The divestment will enhance the Groups future operating profit. Wolfsheck Mill is being divested as part of Stora Ensos Asset Performance Review (APR), which aims to secure a competitive European production base. Wolfsheck Mill is part of Stora Enso Publication Paper division. The mill has two paper machines with annual capacity of approximately 155 000 tonnes: one machine with 65 000 tonnes capacity produces wallpaper base, the other is being gradually transferred from SC (super-calendered magazine paper) to specialty paper grades. ARQUES Industries is a turnaround specialist who focuses on the acquisition and the active restructuring of companies in transitional situations, in order to develop these, with its own team and own resources, to competitive enterprises with a positive yield. For further information, please contact: Hannu Ryöppönen, CFO, tel. +44 20 7016 3114 Bernd Rettig, SEVP, Stora Enso Publication Paper, tel. +49 211 581 2310 Kari Vainio, EVP, Corporate Communications, tel. +44 7799 348 197 Keith B Russell, SVP, Investor Relations, tel. +44 20 7016 3146 Ulla Paajanen-Sainio, VP, Investor Relations and Financial Communications, tel. +358 40 763 8767 www.storaenso.com www.storaenso.com/investors STORA ENSO OYJ p.p. Jussi Siitonen Leena Bergqvist