HELSINKI, Jan. 29, 2021 /PRNewswire/ -- Stora Enso has
decided to permanently close its US-based Virdia operations during
2021. Virdia was acquired in 2014 and has focused on conversion of
cellulosic biomass from sugar cane bagasse into refined sugars. The
operations have consisted of a research centre in Danville, Virginia and a demo plant in
Raceland, Louisiana, which will
both be closed.
The closure is in line with Stora Enso's strategic choices in
R&D to drive future growth and value creation from forest-based
materials. Furthermore, today, the company's innovation work
focuses considerably more on applications further down the value
chain instead of being a raw material supplier. There will be a
stepwise process for discontinuing the operations and closing the
sites during 2021. The employee impact will be approximately 65
Stora Enso employees and 18 contractors.
The asset write downs and provisions were booked as items
affecting comparability (IAC) of EUR -53
million in Stora Enso's fourth quarter 2020 results. A
further EUR -6 million of items
affecting comparability are expected to be recorded in the Q1 2021.
The closure will not have material impact on Stora Enso's
In its US-based operations, Stora Enso has been studying
alternatives for separation technologies that enable cellulosic
biomass, such as bagasse, to be converted into highly refined
sugars. The company has gained insights from this research for its
innovation work, which will be of benefit in future applications.
The intellectual property belongs to Stora Enso for further use by
the different businesses in the company.
Stora Enso is committed to a safe and orderly closure of
operations and will honour existing contractual obligations and
liabilities with relevant stakeholders as required and deemed
appropriate. Stora Enso will provide support for its local
employees throughout the shutdown process.
For further information, please contact:
EVP, Communications and Marketing
tel. +46 72 221 9228
SVP, Investor Relations
tel. +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 25 000 employees in over 30 countries. Our
sales in 2019 were EUR 10.1 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).
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