Stora Enso increases loan facility for its operations in China
20 June 2006, In line with its new growth markets strategy, Stora Enso is focusing on profitable expansion in China by prioritising local sustainable fibre supply and by targeting investments in the growing markets and product segments.
Stora Enso has today signed a new loan agreement with International Finance Corporation (IFC) increasing its loan facility to USD 300 million. The loan will be used to finance Stora Enso’s current operations and future investments in China. The increased facility includes a USD 100 million IFC loan and a USD 200 million B loan syndicated to BNP Paribas, Calyon, Citigroup, The Bank of Tokyo-Mitsubishi UFJ, ING Bank, Nordea and Skandinaviska Enskilda Banken. The Company’s first agreement with IFC for a USD 75 million loan was signed in June 2005.
In April 2006 Stora Enso formed a publication paper joint venture with Shandong Huatai Paper. The joint venture’s paper machine is planned to have an annual production capacity of up to 200 000 tonnes of super-calendered magazine paper and other publication paper grades based on recovered fibre.
Since 1998 Stora Enso has had a paper mill at Suzhou that currently produces annually 240 000 tonnes of coated fine paper to the Chinese market.
In 2005 Stora Enso increased its plantations in the Guangxi province in southern China to approximately 60 000 hectares through land concession rights and wholly owned plantations.
In March 2006 Stora Enso and United Nations Development Programme (UNDP) China signed on agreement for co-operation to conserve biodiversity in Guangxi and to improve community well-being.
UNDP carried out an Environmental and Social Impact Assessment (ESIA) of the Guangxi plantations during last year. According to the results of the study, which included scenarios of up to 120 000 ha of plantations, there are no major environmental or social issues that could jeopardise Stora Enso’s plantation project. Environmental impacts identified in the study will be managed with Stora Enso’s good plantation management practices. In the social dimension, Stora Enso aims to continue and strengthen the engagement with local landholders and communities.
Stora Enso has gained solid experience of implementing environmental and social responsibility during its presence in China. “We aim to maintain good relationships with our stakeholders and to be seen as a first-rate example of how sustainability can be achieved in plantation and mill operations in China,” says Markku Pentikäinen, Executive Vice President, Corporate Technology and Asia Pacific.
Stora Enso is an integrated paper, packaging, and forest products company, producing publication and fine paper, packaging board, and wood products – all areas in which the Group is a global market leader. Stora Enso’s sales totalled EUR 13.2 billion in 2005. The Group has some 46 000 employees in more than 40 countries on five continents.
- Contact Information
- Markus Rauramo
- Senior Vice President, Group Treasurer
- Stora Enso Oyj
- Contact via E-mail
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