Stora Enso sells its packaging activities in Russia

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STORA ENSO OYJ INVESTOR NEWS May 16, 2022 to 9:00 a.m. EEST

Stora Enso sold its three corrugated cardboard packaging plants Russia. The Company’s Lukhovitsy, Arzamas and Balabanovo packing plants were handed over to local management.

At Stora Enso The assessment is that due to the uncertainties in the Russian market, local ownership and operation will provide a more sustainable long-term solution for these companies and their respective employees.

The transaction will have no significant impact on At Stora Enso annual sales and operating EBIT. Due to reduced business prospects for these activities, an impairment loss of 35 million euros was recorded in the first quarter result. The additional loss on the transaction under IFRS will be approximately 55 million euros, consisting mainly of translation differences to be recognized on the closing date. Expenses are considered as elements affecting comparability.

The divested sites are located in Lukhovitsy, Arzamas and Balabanovo employing approximately 620 people and have a total annual capacity of 395 million m² of corrugated cardboard packaging. The sites mainly produce corrugated packaging for the grocery, home improvement, confectionery and pet food segments in the Russian domestic market.

Stora Enso announced on March 2, 2022 that he would stop all production and sales in Russia until further notice. On April 25, Stora Enso announced the sale of its two sawmills and forestry operations in Russia to local management.

For more information, please contact:Carl NorellPress officer
Phone. +46 72 241 0349

Investor requests:
Anna-Lena Åström
SVP Investor Relations
Such. +46 70 210 7691

Part of the global bioeconomy, Stora Enso is a leading supplier of renewable products in packaging, biomaterials, wood construction and paper, and one of the largest private forest owners in the world. We believe that anything made from fossil materials today can be made from a tree tomorrow. Stora Enso has approximately 22,000 employees and our sales in 2021 were €10.2 billion. Stora Enso shares are listed on Nasdaq Helsinki Oy (STEAV, STERV) and Nasdaq Stockholm AB (STE A, STE R). In addition, the shares are traded on the UNITED STATES as ADR (SEOAY). storaenso.com

STORA ENSO OYJ

For more information, please contact:Carl NorellPress officer
Phone. +46 72 241 0349

Investor requests:
Anna-Lena Åström
SVP Investor Relations
Such. +46 70 210 7691

https://news.cision.com/stora-enso-oyj/r/stora-enso-divests-its-packaging-operations-in-russia,c3567428

(c) Decision 2022. All rights reserved., sources Press Releases – English

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