Business News

Stora Enso divests power plant and real estate in the Netherlands

Wednesday 21. May 2008 - On 4 October 2006 Stora Enso announced its intention to close its Berghuizer Mill at Wapenveld in the Netherlands. Paper production at the mill ceased in October 2007 and the main machinery will be scrapped.

Stora Enso has now signed two separate agreements to sell the Berghuizer Mill power plant, land and buildings. Cash proceeds from the transactions will total EUR 21.5 million, an estimated disposal profit of EUR 7 million being recorded in the second quarter.

The land and buildings of the Berghuizer Mill, excluding the power plant, are being sold to W. Goudkuil Beheer B.V. for industrial purposes and will be used among others by Bitufa Waterproofing B.V. for the production of durable waterproofing construction materials. The site will no longer be used for paper production. The sale is expected to be finalised by late 2008.

In a parallel transaction, the gas-fired power plant at the mill site is being sold to Van Twiller B.V., a Dutch subsidiary of Morgan Stanley, the US-based investment bank. The sale is expected to be completed by the end of the second quarter.

Berghuizer Mill, which was part of Stora Enso’s Fine Paper business area, had an annual capacity of 235 000 tonnes of woodfree uncoated fine paper, such as copy and printing paper.