Stora Enso has divested its plantation interest in Indonesia
STORA ENSO OYJ Stock Exchange Release 7 October 2004 at 11.15
Stora Enso has divested its plantation interest in Indonesia Stora Enso has divested its majority shareholding in PT Finnantara Intiga, which owns the Finnantara plantation in West Kalimantan, Indonesia, to Global Forest Ltd., which is part of the Sinar Mas Group. The area in Finnantara planted for commercial use is approximately 35 000 hectares and the concession area 299 700 hectares. The book value of the plantation is USD 26 (EUR 21) million and the transaction will have a minor positive effect on Stora Ensos results for the third quarter of 2004. The decision to divest the interest in the Finnantara plantation is in line with the Groups strategy of releasing capital in order to develop its core businesses. The strategic importance of the Finnantara plantation to Stora Enso has decreased since the decisions were taken to build the Veracel pulp mill in Brazil and to start establishing plantations in Guangxi in southern China. The Group will continue to ensure long-term access to the most competitive fibre from socially and environmentally sustainable sources. The buyer is committed to maintaining and developing the sustainability of the plantation. One of the key motivations of the buyer is to secure wood procurement from socially and environmentally sound sources. Following the divestment of Finnantara, Stora Enso owns plantations in Brazil, Portugal, China and Thailand. The book value of the plantations in Portugal, China and Thailand is EUR 78.4 million. The plantations in Brazil are owned by Veracel, which is an associated company for Stora Enso. For further information, please contact: Björn Hägglund, Deputy Chief Executive Officer, tel. +46 70 528 2785 Markku Pentikäinen, Executive Vice President, Asia Pacific Division, tel. +86 137 6430 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 Ulla Paajanen-Sainio, Vice President, Investor Relations and Financial Communications, tel. +358 40 763 8767 STORA ENSO OYJ Jyrki Kurkinen Ulla Paajanen-Sainio