Stora Enso shut in China – Västerbotten Courier

Forest industry giant Stora Enso will close its paper mill in Suzhou, China, and selling the plant to a local authority for around 240 million euros, equivalent to around 2.2 billion. The capital gain amounts to approximately EUR 180 million of which EUR 26 million will impact second quarter earnings. The rest is expected to report in the income statement for the fourth quarter, according to a press release from Stora Enso.

The mill in Suzhou, with more than 500 employees, has only one paper machine and is no longer competitive, according to Stora Enso. In addition, the mill’s location in the middle of a big city is not favorable for paper production, according to the company.

With the closure reduce Stora Enso’s annual sales by approximately EUR 126 million.

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