European Paper Groups Looking for Partner for Pulp Mill

The world's second largest paper and board maker Stora Enso and
Brazil's Odebrecht are looking for a third partner to join a
greenfield pulp mill project in Brazil, a Stora Enso executive said on
Wednesday.

The investment estimate for the Veracel pulp mill with a capacity of 750,000
metric tons a year is $1.5 billion.

Stora Enso and Odebrecht initially intended to build the mill on a 50-50
basis, but a third partner would likely cut the stakes to a third each, Stora
Enso Senior Executive Vice President Ingvar Petersson told Reuters.

"Our stake is likely to go down to one third," he said.

Petersson said Deutsche Bank was advising Stora Enso and Odebrecht in the
search.

Industry sources said Odebrecht did not want to invest a full 50 percent, and
Stora Enso did not want to consolidate the joint venture, which meant another
partner was necessary for the project to move ahead.