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