SOURCE: Stora Enso Oyj

August 25, 2006 08:39 ET

Stora Enso divests its Wolfsheck Mill to ARQUES

Stora Enso Oyj News Release August 25, 2006 at 12.30 GMT

HELSINKI, FINLAND -- (MARKET WIRE) -- August 25, 2006 -- Stora Enso (NYSE: SEO) today announced that 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 Enso's Publication Paper division by approximately EUR 65 million and the working capital by approximately EUR 8 million. The divestment will enhance the Group's future operating profit.

Wolfsheck Mill is being divested as part of Stora Enso's 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:
Tim Laatsch
Senior Vice President
Communications, Stora Enso North America
tel. 715 422 4023

Copyright © Hugin ASA 2006. All rights reserved.

Contact Information