Stora Enso

Stora Enso is a global supplier of packaging, biomaterials, wood structures and paper solutions based on renewable materials. Develops and produces environmentally friendly wood and biomass products for a range of industries and applications worldwide. Stora Enso solutions are used in such industries as construction, retail, food and industrial production, printing, pharmaceuticals, cosmetics, etc.

History

2022

Sale of Russian business

In mid-May 2022, Stora Enso announced the sale of Russian business. The Finnish-Swedish timber company explained its decision by "instability in the market of the Russian Federation."

According to Stora Enso, Lukhovitsky (Moscow region), Arzamas (Nizhny Novgorod region) and Balabanovsky (Kaluga region) packaging plants were sold to local top management, which will ensure the continuity of production in the long term and improve the position of employees in the current conditions. The sold plants employ about 620 people, their total capacity of enterprises allows to produce 395 million square meters. m of corrugated packaging per year.

Finnish-Swedish timber company Stora Enso sold Russian business

According to the company, the transaction will not have a significant impact on Stora Enso's annual sales and operating profit. Due to the deterioration of business prospects for these enterprises, in the first quarter of 2022, an impairment loss of 35 million euros was recorded. The additional loss on the transaction in accordance with international financial accounting standards will be approximately 55 million euros and consists mainly of currency translation adjustments, which should be reflected on the closing date.

Commenting on the company's decision to leave the Russian Federation, Andrei Frolov, vice president of the Union of Timber Manufacturers and Forest Exporters of Russia, in a conversation with RBC, noted that in the global sense, the departure of Stora Enso from Russia as a whole and from Karelia, in particular, is not a very big problem. In our country, the company has too little capacity for logging and sawmilling. And the production of corrugated products occupies a small percentage of the Russian market.

Andrei Frolov added that "according to forecasts, overproduction of cardboard products and packaging is expected in our country in the near future, so the departure of Stora Enso will be invisible. In this regard, he can even help Russian enterprises increase production by liberating the niche that the Finnish company previously occupied^[1]

Production shutdown in Russia against the backdrop of a special operation of the Russian Armed Forces in Ukraine

In March 2022, amid a special operation by Russia on To Ukraine Elopak and Stora Enso, they stopped production in, Russia as a result, many suppliers of dairy products and juices faced temporary difficulties.

Notes