Stora Enso Has Completed the Divestment of Its Stake in Dawang Paper Mill in China
The Dawang paper mill at Dongying in Shandong province in China has an annual production capacity of 140,000 tonnes of super-calendered (SC) magazine paper and other publication paper grades.
Oct. 22, 2019 - Stora Enso today announced that it has completed the divestment of its 60% equity stake in the Dawang Mill in China to its joint venture partner, Shandong Huatai Paper. After this transaction, Stora Enso has no paper production in China. The former joint venture, Stora Enso Huatai (Shandong) Paper Company Limited, operated the Dawang paper mill at Dongying in Shandong province in China. The mill has an annual production capacity of 140,000 tonnes of super-calendered (SC) magazine paper and other publication paper grades based on recovered fibre. Stora Enso first announced plans to divest its stake in the JV in July of this year. At that time, Kati ter Horst, EVP of Stora Enso's Paper division, commented, “We have had a joint venture partnership with Huatai over the past ten years of operation and believe Huatai can develop Dawang Mill for the long-term benefit of Chinese paper customers.” The transaction will not have any material impact on Stora Enso's operational EBIT. Following the transaction, Stora Enso's net debt will decrease by approximately EUR 22 million and annual sales by approximately EUR 60 million. Part of the bioeconomy, Stora Enso is a leading global provider of renewable solutions in packaging, biomaterials, wooden constructions and paper. To learn more, please visit: www.storaenso.com. SOURCE: Stora Enso |