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Stora Enso has initiated a sales process for a potential divestment of its cartonboard production facility in Beihai, China. The divestment would also include the Group's forestry activities in the surrounding region, which supply the raw material for the Beihai site. The company had already initiated the sale of its mills in Russia in April.
Strategic goal of Stora Enso to further expand its position in the fibre-based packaging market. The divestment of the Beihai business would enable the company to accelerate its strategy by focusing on cost-efficient sites that serve the growing global packaging market - such as the recently announced Investment in Oulu, Finland, and the forthcoming Acquisition of the De Jong Packaging Group. The aim is to find a sustainable alternative for the future of the activities in Beihai and for the people working there.
No impact on production
The sale of the cartonboard mill and the forestry activities would take place separately or as a combined unit. The company has not committed to a timetable for the completion of the process. The divestment plan has no direct impact on Stora Enso's finances or on production at the Beihai site. The location will continue to serve its customers.
Stora Enso's Beihai production site was put into operation in 2016. It has a modern pulp mill and a production line for premium consumer board for the Chinese market. The annual production capacity is 250,000 tonnes of mechanical pulp and 550,000 tonnes of consumer cartonboard. Stora Enso also manages 70,000 hectares of eucalyptus plantations in the Guangxi region, which were established in 2003 and are used to supply fibre. Around 1,000 people are employed in the combined operations, including the forestry operations.
Source: Stora Enso
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