Stora Enso Chooses to Retain Beihai Production Site
Stora Enso has made a significant decision to discontinue the divestment process for its Beihai packaging board production site and forestry operations. This move showcases the company's confidence in its assets and its strategic direction in the rapidly evolving fiber-based packaging market.
Capitalizing on Internal Value
The management at Stora Enso has concluded that the value derived from the in-house operations exceeds any potential transaction value available through sales. As a result, the company has opted to retain these vital operations, thus reinforcing its commitment to operational excellence, product innovation, and cost optimization.
Focus on Operational Excellence
The Beihai production site will continue to advance with a strong focus on enhancing operational quality and product development. Stora Enso plans to fine-tune its product offerings, prioritizing liquid packaging board and other premium grades. This strategic adjustment aims to cement Stora Enso's leading role as a primary supplier in the global market and maintain its competitive edge.
Strategic Ambitions in Asia Pacific
With ongoing developments, the Beihai site will not only cater to significant global customers but will also serve the local market with high-quality products. In addition to Beihai, Stora Enso's liquid packaging board production is supported by facilities in Imatra, Finland, and Skoghall, Sweden. Together, these locations strengthen the company’s capacity to meet diverse customer needs.
Leadership Insights
Stora Enso's President and CEO, Hans Sohlström, expressed contentment with the decision to retain the Beihai site. Following a comprehensive review and interaction with potential buyers, the company made this strategic move, focusing on business continuity and responding to recent fluctuations in global logistics and wood costs. The comparison of operational costs has become more favorable for the Beihai site, enabling it to better serve the premium packaging demand in the Asia Pacific region.
Financial Implications of the Decision
Previously classified as assets held for sale, the Beihai site will now revert back to regular operational status. This shift impacts financial reporting for Stora Enso, with expected adjustments in EBIT and operating results for the stated periods. Specifically, a reduction of EUR 7.5 million each quarter has been projected for the adjusted EBIT in 2024, totaling an anticipated EUR 30 million for the year due to the reinstatement of depreciation in financial reports.
Stora Enso's Commitment to Sustainability
Stora Enso stands as a prominent player within the global bioeconomy, offering renewable products in packaging, biomaterials, and wooden construction. The company emphasizes low-carbon and recyclable solutions that align with their goal of supporting customers in utilizing sustainable products.
Corporate Profile and Contact Information
Stora Enso boasts a workforce of around 20,000 employees, contributing to impressive sales figures reaching EUR 9.4 billion in the last fiscal year. The company is listed on both Nasdaq Helsinki (STEAV, STERV) and Nasdaq Stockholm (STE A, STE R), with trading also available in the OTC Markets in the USA.
For further information, please contact:
Carl Norell
SVP Corporate Communications
tel. +46 72 241 0349
Investor enquiries:
Anna-Lena Åström
SVP Investor Relations
tel. +46 70 210 7691
Frequently Asked Questions
Why did Stora Enso decide to retain the Beihai site?
Stora Enso determined that the internal value of the Beihai site surpassed potential sale offers, leading to the decision to maintain operations.
What changes will occur in the product offerings from the Beihai site?
The company plans to shift its product mix to emphasize liquid packaging board and premium grades, enhancing its market position.
How does this decision impact Stora Enso's financial reporting?
The Beihai site will negatively influence adjusted EBIT by EUR 7.5 million quarterly, amounting to EUR 30 million for the entire year as they reinstate depreciation.
What role does the Beihai site play in Stora Enso's global operations?
The Beihai facility is crucial in servicing both local and international customers, contributing significantly to Stora Enso's fiber-based packaging objectives.
Who can be contacted for more information regarding Stora Enso's operations?
Contact can be made through Carl Norell for general inquiries or Anna-Lena Åström for investor relations for more detailed insights.
