Finnish paper manufacturing group Stora Enso has signed an agreement to divest the business and assets of its Swedish subsidiary Stora Enso Re-board to Culas, for an undisclosed sum.
The agreement to sell Re-board, a producer of rigid paperboard for exhibitions and displays, was signed yesterday (5 July).
“Stora Enso’s focus within packaging is on developing and delivering fibre-based solutions throughout the value chain,” said Peter Torstensson, senior vice-president and head of corrugated at Stora Enso’s Nordics Packaging Solutions division.
“Re-board delivers a niche product and we believe that a new owner can better give this business the attention it deserves and develop it further.”
Buyer Culas is partially owned by the current managing director of Stora Enso Re-board, John-Åke Svensson.
The transaction is expected to be closed during Q3 2017 and is not expected to have a significant impact on Stora Enso’s sales and operational EBIT. The transaction is subject to negotiations under the Swedish Co-determination Act (MBL).
Once the divestment is completed, Stora Enso Re-board’s staff will be offered to transfer to the new owner.
Re-board had sales of SEK 43.5m (£4m) and an operating profit of SEK 500,000 in 2016, according to Swedish financial newspaper Dagens Industri. Stora Enso’s overall turnover in 2016 was €9.8bn.
This is the latest in a string of disposals by the paper giant as it moves through its ‘strategic transformation’ into a renewable materials business with a focus on consumer board, packaging products, biomaterials and wood products.
Last year the group sold its German Kabel mill and closed the corrugated packaging plant at its Heinola site in Finland, citing market pressure and shrinking volumes.
And last month it permanently shut down paper machine 8 (PM8) at the Kvarnsveden Mill in Sweden, due to structural weakening of magazine paper demand in Europe. The company first announced plans to close PM8 in February.