Stora Enso has entered into an settlement to divest its two sawmills in Russia. The Company’s Nebolchi and Impilahti sawmills shall be divested to native administration. In addition, the divestment contains Stora Enso’s Russian forest operation which by means of its harvesting provides wooden to the sawmills.
Stora Enso’s evaluation is that as a result of uncertainties in the Russian market, native possession and operation can present a extra sustainable long-term answer for these enterprise operations and the workers working there.
The transaction is, pending crucial approvals, anticipated to be concluded inside Q2 2022 and may have no materials impression on Stora Enso’s annual gross sales and Operational EBIT. Due to decreased enterprise prospects on these companies, an impairment lack of EUR 70 million has been recorded in the primary quarter outcome. The extra loss on the transaction beneath IFRS shall be roughly EUR 60 million, consisting primarily of foreign money translation changes to be recorded on the deadline. The bills are thought-about as gadgets affecting comparability.
The sawmill websites are situated in Novgorod and Karelia using roughly 330 individuals and have a complete annual capability of 350,000 m3 of sawn timber, together with 55,000 m3 of processed timber and 65,000 tonnes of pellets. Stora Enso’s Russian forest operations employs roughly 170 individuals and manages long-term harvesting rights for round 370,000 hectares.
Stora Enso introduced on 2 March 2022 that it might cease all manufacturing and gross sales in Russia till additional discover. The Group is in a course of to discover a sustainable answer for the way forward for its three packaging vegetation in Russia.