Stora Enso withdraws from consumer board project in China
STORA ENSO OYJ Stock Exchange Release 5 January 2006 at 9.00
Stora Enso withdraws from consumer board project in China
After a detailed due diligence process Stora Enso has decided to
withdraw from the previously announced project in consumer
board production in China. A letter of intent to start a joint
venture with Chinese Foshan Huaxin Packaging Co., Ltd. was
signed in August 2005.
The decision to withdraw was taken after the due diligence
process revealed that the project would not meet the
profitability expectations set by Stora Enso because technical
modification of the machine would be more challenging than
initially estimated. The total cost of due diligence and
withdrawal from the project is not material for Stora Enso.
The focus in China is now on developing the previously announced
plantation project in Guangxi and publication paper feasibility
study in Shandong. Stora Enso is exploring other possibilities
of liquid packaging board production for the Chinese market.
For further information, please contact:
Kai Korhonen, Senior Executive Vice President, Stora Enso
Packaging Boards, tel. +358 2046 21496
Markku Pentikäinen, Executive Vice President, Stora Enso Asia
Pacific, tel. +86 1376 430 0175
Kari Vainio, Executive Vice President, Corporate Communications,
tel. +44 7799 348 197
Keith B Russell, Senior Vice President, Investor Relations, tel.
+44 20 7016 3146
www.storaenso.com
www.storaenso.com/investors
Previous press releases concerning Stora Enso in China are
available at www.storaenso.com/press
- 10 November 2005: Stora Enso strengthens its presence in
Guangxi
- 28 October 2005: Stora Enso signs joint-venture agreement
with Foshan Huaxin Packaging
- 11 August 2005: Stora Enso to start liquid packaging board
production in
joint venture in China
- 10 June 2005: Stora Enso signs loan agreement with
International Financing Corporation
- 31 March 2005: UNDP to Assess Environment and Social Impact
of a Forestry Investment Project in Guangxi, China
- 28 October 2004: Stora Enso joint venture in China
- 4 February 2004: Stora Enso to modernise its fine paper
machine at Suzhou, China
STORA ENSO OYJ
p.p. Jussi Siitonen Jukka Marttila