The Helsinki, Finland, company said Wednesday it is initiating a strategic review, with options to separate the forest assets or list them through a partial demerger as a public company that would be owned by Stora Enso shareholders.

The idea would be to make two independent companies, which could focus more on their individual areas and be more streamlined. Stora Enso would continue as a renewable packaging provider.

If listed, the Swedish forest business would be Europe's largest listed pure forest company, Stora Enso said.

Stora Enso said in May it would divest 12.4% of its Swedish forest holdings for EUR 900 million ($1.04 billion). It retained ownership of about 1.2 million hectares of land, which was worth about EUR 5.8 billion as of March 31, the company said.

Stora Enso plans to provide an update on the strategic review by the end of 2025.