Stora Enso initiates exclusive discussions with Arauco about joint ownership regarding Stora Enso Arapoti in Brazil

Stora Enso initiates exclusive discussions with Arauco about joint ownership regarding Stora Enso Arapoti in BrazilStora Enso Oyj Press Release 26 October 2006 at 09:58 GMTStora Enso is initiating exclusive discussions with the aim of joint ownership regarding certain assets of Stora Enso Arapoti in Brazil with Arauco, a Chilean forest products company. Stora Enso acquired Stora Enso Arapoti from International Paper in September 2006 for an enterprise value of approximately USD 420 million (EUR 333 million). The Arapoti assets were formerly owned by Inpacel - Indústria de Papel Arapoti Ltda. and Inpacel Agroflorestal Ltda., subsidiaries of International Paper. Stora Enso Arapoti comprises a paper mill producing coated mechanical paper (205 000 tonnes annual capacity), a sawmill (150 000 m3 sawn timber annual capacity) and approximately 50 000 hectares of land including approximately 30 000 hectares of productive plantations. The potential joint ownership with Arauco is focused primarily on the sawmill and forestland operations. The non-binding joint ownership discussions are expected to be finalised prior to the end of January 2007. "One of the core businesses of Stora Enso is to produce high quality publication paper, which was the main reason for acquiring Arapoti. Stora Enso does not see itself as a sawmill operator in Latin America. Stora Enso will also explore with Arauco the most efficient use of the forest resources," says Nils Grafström, President of Stora Enso Latin America Division. Arauco is one of the largest forestry enterprises in Latin America in terms of surface area and yield of its plantations, production of market kraft wood pulp, and production of sawn timber and panels. It is organised into four strategic business areas: Forestry, Wood Pulp, Sawn Timber and Panels. Arauco has operations in Chile, Argentina, Brazil, and Uruguay. For further information, please contact: Hannu Ryöppönen, CFO, tel. +358 2046 21450 Nils Grafström, President, Stora Enso Latin America Division, tel. +55 1181 759 283Kari Vainio, EVP, Corporate Communications, tel. +44 7799 348 197Keith B Russell, SVP, Investor Relations, tel. +44 7775 788 659 www.storaenso.comwww.storaenso.com/investors Previous press releases regarding Stora Enso's activities in Latin America are available at www.storaenso.com/press:- 1 September 2006: Stora Enso finalises acquisition of Vinson Indústria de Papel Arapoti Ltda. and Vinson Empreendimentos Agricolas Ltda. in Brazil - 22 August 2006: Stora Enso becomes the sole producer of coated mechanical paper in Latin America: The Group acquires assets from International Paper in Brazil - 26 September 2005: Stora Enso is purchasing land in Brazil and Uruguay- 28 September 2005: Stora Enso is exploring the possibility of building a new fibre line at Veracel- 15 August 2005: Stora Enso's Oulu Mill receives first shipment of Veracel pulp- 8 May 2003: Stora Enso and Aracruz announce decision to build Veracel pulp mill Text version / Internet version / Print / Close