Wednesday, January 4, 2023
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Sylvamo closed on a deal to acquire Stora Enso’s uncoated freesheet paper mill in Nymolla. The Sweden mill was purchased under the terms of a final net working capital and net debt adjustment, for 150 million euros, or roughly $160 million. With Multicopy as the top paper brand, the Nymölla plant has a capacity of 485,000 metric tonnes of woodfree uncoated office papers.
The divestment is anticipated to lower Stora Enso’s yearly revenues by about EUR 290 million based on the 2021 projections. Stora Enso will record a one-time disposal loss of about EUR 25 million (including currency translation adjustments) in its IFRS operating profit in the first quarter of 2023 as an item impacting comparability, subject to closing date adjustments. This deal is a part of Stora Enso’s earlier-announced strategy to sell four of its five paper manufacturing facilities. Stora Enso’s strategy calls for a focus on the long-term growth potential of its renewable products in building solutions, packaging, and biomaterials advancements. With no specified completion date, the divestment process is still ongoing for the remaining paper sites at Hylte and Anjala. Stora Enso’s paper activities, which continue to serve their separate customers, are unaffected by the procedure right away.
Global paper manufacturer Sylvamo operates mills in Europe, Latin America, and North America. It converts renewable resources into the papers that people use for communication, pleasure, and education. Sylvamo has its headquarters in Memphis, Tennessee, and more than 7,500 people work there. The year 2021 saw $3.5 billion in net sales.
“Following our recent agreement to divest the Maxau site, I am pleased that we found a good, experienced owner in Sylvamo for our Nymölla site. The process to divest the remaining paper assets continues,” says Seppo Parvi, CFO and Head of Paper division at Stora Enso.
Tags: Multicopy, Nymolla, sweden, Sylvamo, woodworking, woodworking and manufacturing, woodworking event, woodworking industry, woodworking UK
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