HELSINKI, May 27, 2021 /PRNewswire/ -- Stora Enso has
signed an agreement to divest its Sachsen Mill located in
Eilenburg, Germany, to the
Swiss-based family-owned company Model Group. Sachsen Mill has an
annual production capacity of 310 000 tonnes of newsprint
specialty paper based on recycled paper.
Under the agreement, Model Group will own and operate Sachsen
Mill after the transaction is closed. Stora Enso will continue to
sell and distribute Sachsen's paper products under a contract
manufacturing agreement for a period of 18 months after the
closing. After that period, Model will convert the mill to the
production of containerboard. All 230 employees at Sachsen Mill
will move to Model Group with the transaction.
"We believe Model will be a good owner to ensure long-term
development of the Sachsen Mill. We will continue to serve our
customers with high quality paper products from Sachsen Mill at
least until the end of 2022," said
Kati ter Horst
, EVP, Stora Enso's Paper division.
"Sachsen Mill is a perfect fit into our value chain within our
existing network of operations, and we are looking forward to
developing the site further," said
Daniel Model, Chairman and CEO.
The enterprise value of the transaction is EUR 35 million, subject to customary purchase
price adjustments. The impact on Stora Enso's operational EBIT or
net debt is not considered material. Stora Enso will book a
one-time cost of approximately EUR 32
million in its IFRS operating profit in the second quarter
of 2021, considered as an item affecting comparability (IAC). The
transaction is expected to be closed during the third quarter of
2021.
About Model Group
Model Holding AG is a 100% family-owned company founded in 1882.
Headquartered in Weinfelden, Switzerland, Model Group develops, produces
and delivers innovative packaging solutions using cardboard and
corrugated board. The company has 9 corrugating production plants
in Europe, and it produces
containerboard paper at two sites, Weinfelden and Niedergösgen, in
Switzerland. The company revenue
in 2020 was CHF 859 million and the
number of employees 4 225. More info at www.modelgroup.com
For further information, please contact:
Liisa Nyyssönen
SVP, Communications, Paper division, Stora Enso
tel. +358 40 544 3491
Investor enquiries:
Ulla PaajanenSVP, Investor Relationstel. +358 40 763
8767
Part of the bioeconomy, Stora Enso is a leading global provider
of renewable solutions in packaging, biomaterials, wooden
constructions and paper. We believe that everything that is made
from fossil-based materials today can be made from a tree tomorrow.
Stora Enso has some 23 000 employees, and sales in over 50
countries. Our sales in 2020 were EUR 8.6
billion. Stora Enso shares are listed on Nasdaq Helsinki
(STEAV, STERV) and Nasdaq Stockholm (STE A, STE R). In addition,
the shares are traded in the USA
as ADRs (SEOAY). storaenso.com
CONTACT:
For further information, please contact:
Liisa Nyyssönen
SVP, Communications, Paper division, Stora Enso
tel. +358 40 544 3491
Investor enquiries:
Ulla PaajanenSVP, Investor Relationstel. +358 40 763 8767
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