Stora Enso is exploring the possibility of selling its Grycksbo Mill
HELSINKI 8/22/2005 10:00 PM GMT (TransWorldNews)
Stora Enso has commenced investigations into the feasibility of divesting its fine paper mill at Grycksbo in Sweden, as the Group focuses its coated fine paper business on multi-coated graphical grades. Stora Enso is seeking a buyer with a product portfolio for which the mill's matt-coated fine papers would be a better fit, and which would be interested in developing the mill's business in the long term.
Grycksbo Mill has three paper machines producing on-machine coated fine papers with a total annual capacity of 280 000 tonnes. Its customers are mainly in Western and Northern Europe. The mill has a strong market position in its paper segment. Grycksbo Mill's production and commercial operations will continue as usual while a new owner is sought for the mill.
The planned divestment of Grycksbo Mill is part of the Group's European profit improvement programme, Profit 2007, which includes the rationalisation of its fine paper business. The target of the programme is an improvement in annual profit before tax of EUR 300 million from mid 2007 onwards. It is planned to announce details of the programme with the third quarter 2005 results.
For further information, please contact:
Yngve Stade, Senior Executive Vice President, Corporate Support, tel. +46 8 613 66 60
Aulis Ansaharju, Senior Vice President, Graphic Papers, tel. +358 2046 21282
Lennart Westman, Mill Director, Grycksbo Mill, tel. +46 23 68010
Keith B Russell, Senior Vice President, Investor Relations, tel. +44 7775 788 659
Ulla Paajanen-Sainio, Vice President, Investor Relations and Financial Communications,
tel. +358 2046 21242