Stora Enso withdraws from consumer board project in China
Stora Enso Oyj Stock Exchange Release 5 January 2006 at 7:00 GMT
After a detailed due diligence process Stora Enso has decided to withdraw from the previously announced project in consumer board production in China. A letter of intent to start a joint venture with Chinese Foshan Huaxin Packaging Co., Ltd. was signed in August 2005.
The decision to withdraw was taken after the due diligence process revealed that the project would not meet the profitability expectations set by Stora Enso because technical modification of the machine would be more challenging than initially estimated. The total cost of due diligence and withdrawal from the project is not material for Stora Enso.
The focus in China is now on developing the previously announced plantation project in Guangxi and publication paper feasibility study in Shandong. Stora Enso is exploring other possibilities of liquid packaging board production for the Chinese market.
Stora Enso is an integrated paper, packaging and forest products company producing publication and fine papers, packaging boards and wood products, areas in which the Group is a global market leader. Stora Enso sales totalled EUR 12.4 billion in 2004. The Group has some 45 000 employees in more than 40 countries in five continents and an annual production capacity of 16.4 million tonnes of paper and board and 7.7 million cubic metres of sawn wood products, including 3.2 million cubic metres of value-added products. Stora Enso’s shares are listed in Helsinki, Stockholm and New York.
- Contact Information
- Kari Vainio
- Executive Vice President, Corporate Communications
- Stora Enso
- Contact via E-mail
This news content was configured by WebWire editorial staff. Linking is permitted.
News Release Distribution and Press Release Distribution Services Provided by WebWire.