Sunday, October 4, 2015 12:00 pm

Stora Enso announced it has completed the divestment of its Barcelona mill, which produces recycled-fiber based consumer board, to the private equity fund Quantum.

The company said the transaction is in line with Stora Enso's strategy to focus its consumer board offering on high quality virgin-fiber products.

The total cash consideration for the divestment of the shares is Euro 10 million, subject to customary closing day adjustments. The transaction has no material income statement impact.

Based on the annual figures for 2014, the divestment reduces Stora Enso's annual sales by Euro 117 million and simultaneously decreases Stora Enso's annual board production capacity by approximately 195 000 tonnes from the beginning of the fourth quarter 2015 onward.

The transaction does not have material impact on Stora Enso's operational EBIT and cash flow going forward, and it will improve the operational EBIT and EBITDA margins slightly.

The Barcelona mill employs approximately 220 people and was part of Consumer Board division.

In addition, Stora Enso has completed the divestment of its packaging plant in Komárom, Hungary, which produces offset printed micro-flute packaging, to Van Genechten Packaging International S.A.

The total cash consideration for the divestment of the shares is Euro 13 million, subject to customary closing day adjustments.

Based on the annual figures for 2014, the divestment reduces Stora Enso's annual sales by Euro 14 million and simultaneously decreases the annual corrugated packaging converting capacity by approximately 15 million m2 from the beginning of the fourth quarter of 2015 onward.

The Komarom plant employs approximately 90 people and was part of Packaging Solutions division.