Consumables

Stora Enso finalises divestment of its Kotka Mills to OpenGate Capital

Friday 02. July 2010 - Stora Enso has finalised the divestment of its integrated mills at Kotka in Finland and its laminating paper operations in Malaysia to private equity firm OpenGate Capital as announced on 22 April 2010. The total consideration including earn-out is up to EUR 24 million.

The divestment is part of the plan to focus Stora Enso’s business portfolio
announced on 19 August 2009. As part of the transaction, Stora Enso is divesting
its laminating paper, special coated magazine paper and sawmill businesses at
Kotka. The transaction also includes the fully-owned laminating paper subsidiary
in Malaysia, and the business operations of the Tainionkoski paper machine 7,
which remains in Stora Enso’s ownership, but is leased to the new owner. The
Kotka mill site and its buildings are included in the divestment.

Based on 2009 annual figures, the divestment is expected to reduce Stora Enso’s
annual sales by EUR 203 million, improve its annual operating profit by EUR 11
million and reduce its working capital by EUR 24 million. This operating profit
improvement of EUR 11 million is included in the estimate of EUR 140 million to
EUR 160 million profit improvement arising from the proposed closures,
divestments and product swaps announced on 19 August 2009.

The divestment reduces Stora Enso’s annual production capacity by 180 000 tonnes
of machine-finished coated paper (MFC), 200 000 tonnes of laminating paper,
40 000 tonnes of Imprex products and 230 000 m3 of sawnwood. The 570 employees
affected, including 480 working at Kotka, 50 at Tainionkoski and 40 in Malaysia,
are transferring to the service of the new owner. Stora Enso and OpenGate
Capital made an agreement about wood supply as part of the divestment.