Stora Enso to divest Barcelona consumer board mill

Stora Enso of Finland has reported that it plans to divest its Barcelona mill, which produces recycled-fibre-based consumer board, to the private equity fund Quantum, based in Munich.

The company says the transaction is in line with its strategy to focus its consumer board products on virgin-fibre products.

The company EUR 10 million transaction, subject to closing day adjustments and regulatory approval, is expected to be completed in the fourth quarter of 2015.

“Stora Enso is focusing its consumer board offering on high quality virgin-fibre products. The Barcelona mill is the only recycled-fibre based mill in our Consumer Board division. Despite positive results development in recent months, the Barcelona mill requires further development effort and investment if it is to remain on a profitable path. I believe that the mill can operate more efficiently under the new ownership,” says Jari Latvanen, head of the company’s consumer board division.

Based on the annual figures for 2014, the divestment is expected to reduce Stora Enso’s annual sales by EUR 117 million and simultaneously decrease Stora Enso’s annual board production capacity by approximately 195,000 metric tons.

The company says the transaction does not have a material impact on Stora Enso’s operational earnings before income tax and cash flow going forward and may improve margins slightly. The Barcelona mill employs approximately 220 people.