Monday, June 26, 2023
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Stora Enso plans fresh strategic business move to retain their position in the global bio-economy. This time they have taken the decision to divest its wood products DIY (Do it yourself) unit in Amsterdam, Netherlands to Megahout. This initiative is backed by the private equity company Quadrum Capital. The unit is expected to be closed in Q3 2023, Subject to regulatory approvals and consultation with employee representatives.
The company is taking this step as one of the positive step that will push Stora Enso’s long-term business target a bit further. The Amsterdam planning site is often taken as a non-core asset; therefore the company has finally taken this decision of divestment. The intended divestment of Stora Enso Timber DIY Products B.V. is in line with Long-term strategy as this particular site is a non-integrated unit that even has limited investment scopes.
With approximately 21,000 employees and EUR 11.7 billion sales in 2022, Stora Enso plans to grow with every passing day. Therefore it can be believed that its decisions will bring better business profits. Pointing out the benefits of this decision, Lars Völkel, Executive Vice President Stora Enso division Wood Products hopefully says, “We are very pleased to have found a good home for our Amsterdam site. Megahout is in a better position to give the mill the attention it deserves and ensure a long-term development”
The total Group planning capacity of the company was 2,495,000 m3 in 2022 and this divestment will reduce Stora Enso’s planning capacity by 80,000 m3. The company has also thought the best for the employees working in the Amsterdam site. The site employs approximately 60 people, whose contracts will be transferred as part of the transaction. Finally, it is to be noted that this divestment’s impact on Stora Enso’s sales, operational EBIT and net debt will not be material.