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Stora Enso sells some shareholdings in Stora Enso Arapoti to Arauco

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Stora Enso and Arauco have concluded their exclusive negotiations and reached
agreement for Stora Enso to sell some assets of Stora Enso Arapoti in Brazil to
Arauco. Stora Enso is selling 100% of the Arapoti sawmill, 80% of the shares of
the forest holding company and 20% of the shares of the coated paper mill
company to Arauco. The total consideration is USD 208 million (EUR 147
million). The divestment will have no material impact on Stora Enso's third
quarter 2007 operating profit. The transactions are expected to be completed by
the end of October 2007. 

Stora Enso Arapoti comprises a coated paper mill company (capacity 205 000
tonnes of LWC paper per year), a sawmill (capacity 150 000 m³ per year) and a
forest plantations company (30 000 hectares of plantations). 

“Joint ownership of the forest holdings and paper mill will enable Stora Enso
to develop co-operation with Arauco, a leading company with extensive knowledge
of the region and proven business know-how in its fields. The co-operation
between the two companies could eventually result in other joint projects in
Latin America. Stora Enso is divesting the Arapoti sawmill and control of the
forest holdings company as it is not Stora Enso's strategy to develop sawmill
operations in Latin America. The forest holdings, comprising 30 000 hectares of
plantations around Arapoti, are used mainly to supply the Arapoti sawmill and
the coated mechanical paper mill under long-term contract,” says Nils
Grafström, President of Stora Enso Latin America. 

Arauco is one of the largest forest industry companies in Latin America in
terms of plantation area and yield of its plantations, and production of market
kraft wood pulp, 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. The company had sales of
USD 2 850 million in 2006. 
Estimated financial impact on Stora Enso Group
Stora Enso's annual sales are expected to decrease by EUR 25 million. The
divestment is expected to have no material impact on the annual operating
profit. 


For further information, please contact:  
Hannu Ryöppönen, Deputy CEO and CFO, tel. +358 2046 21450 
Nils Grafström, President, Stora Enso Latin America, tel. +55 1181 759 283
Kari Vainio, EVP, Corporate Communications, tel. +44 7799 348 197
Keith B Russell, SVP, Investor Relations, tel. +44 7775 788 659
Ulla Paajanen-Sainio, VP, Investor Relations and Financial Communications, tel.
+358 2046 21242 

Previous press releases regarding Stora Enso's activities in Latin America are
available at www.storaenso.com/press: 

-	26 October 2006: Stora Enso initiates exclusive discussions with Arauco about
joint ownership regarding Stora Enso Arapoti in Brazil 
-	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 
-	28 September 2005: Stora Enso is purchasing land in Brazil and Uruguay 
-	26 September 2005: Stora Enso is purchasing land in Brazil and Uruguay
-	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 

www.storaenso.com
www.storaenso.com/investors 


STORA ENSO OYJ



pp.	Jussi Siitonen			Jukka Marttila





                                            

                

            

        

    

    



    

        
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