SOURCE: Stora Enso Oyj

April 27, 2007 23:18 ET

Stora Enso Acquires Mill Site Land at Beihai in China

HELSINKI, FINLAND -- (MARKET WIRE) -- April 27, 2007 -- Stora Enso (NYSE: SEO) today announced that Stora Enso has signed a mill site land acquisition agreement with Beihai City Government in Guangxi, China. The agreement will provide Stora Enso a total of 250 hectares of industrial land for possible future use as a mill site. The mill site is by the sea in the Tieshangang Industrial Zone of Beihai City in the north of Beibu Gulf in the South China Sea, near Vietnam. The purchase price is about EUR 27 million.

Stora Enso's Board of Directors has taken no formal decision concerning investment in a mill at Beihai. However, this acquisition would facilitate a future investment. A prerequisite for the investment decision is that the acquisition of land use rights develops in a way that will secure a sufficient fibre base.

The area has suitable soil and a favourable climate for eucalyptus plantations. It is intended to create a sustainably managed fibre base of 160 000 hectares to support establishment of an integrated pulp and paper/board mill in Guangxi. Stora Enso's development of the plantations in Guangxi began in 2002.

To ensure sustainable development of its plantations in China, Stora Enso invited the United Nations Development Programme (UNDP) to carry out an Environmental and Social Impact Assessment (ESIA) of the Guangxi plantations in 2005 and 2006. The assessment found that there are no major environmental or social issues that could have an impact on Stora Enso's plantation project in Guangxi.

For further information, please contact:
Tim Laatsch, Senior Vice President, Communications, Stora Enso North
America,
tel. 715 422 4023
Wangqiu Song, President, Stora Enso China, tel. +86 21 6335 3050
Kari Vainio, EVP, Corporate Communications, tel. +44 7799 348 197
Keith Russell, SVP, Investor Relations, tel. +44 7775 788 659
Kari Tuomela, President, Guangxi, Stora Enso Forestry, tel. +86 139
786 61368
Previous press releases concerning Stora Enso's activities of Forest Pulp and Paper Integration Project in China are available at www.storaenso.com/press
-          25 September 2006: Stora Enso further expands its
plantations in Guangxi
-          20 June 2006: Stora Enso increases loan facility for its
operations in China
-              29 March  2006: Stora Enso  to sign  an agreement  for
co-operation with UNDP China
-          10 November 2005: Stora Enso strengthens its presence in
Guangxi
-          10 June 2005: Stora Enso signs loan agreement with
International Financing Corporation
-          31 March 2005: UNDP to Assess Environment and Social
Impact of a Forestry Investment Project in Guangxi, China
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