Business News

Stora Enso finalises divestment of Summa Mill premises in Finland

Monday 02. March 2009 - Stora Enso has finalised the divestment of the buildings and most of the Summa Mill site in Finland to the Google Group of Companies as announced on 12 February 2009 for approximately EUR 40 million.

The transaction will improve operating profit by approximately EUR 38 million, of which approximately EUR 15 million is a reversal of earlier impairment, and is recorded as a non-recurring item in the first quarter 2009 results.

Stora Enso and Google have agreed that part of the mill site will be further transferred to the City of Hamina for one or more public purposes, such as other economic development initiatives, industrial park expansion, and public park or similar recreational areas, as deemed most appropriate by Hamina.

Paper production at Summa Mill ended in January 2008 and will not be resumed.

“This transaction, as well as the prospect of Google’s transforming this former mill into a technology centre, represents an important milestone for Hamina and the rest of Southeastern Finland. Stora Enso hopes that Google’s interest in this region encourages other companies to favourably consider its strong attributes and highly capable people.

“We are delighted to find this exciting solution for our premises in Summa with a renowned global information technology company. We also hope that the transfer of site by us and Google to the City of Hamina will give still further boost for Summa to build a lucrative future. We are most committed to find constructive solutions for our people and sites affected by the very necessary improvement measures of our company,” says Markus Rauramo, CFO of Stora Enso.