Stora Enso will sell one of its recycled paper mills for newspapers, magazines and leaflets. The Finnish-Swedish paper manufacturer has just signed an agreement to sell the Sachsen site in Eilenburg, Germany to the Swiss family group Model for 35 million euros. No redundancies among the 230 employees are planned.
Model Group will own and operate Sachsen Mill, which has a production capacity of 310,000 tons per year of paper. For 18 months following the completion of the divestiture expected in the third quarter of 2021, Stora Enso will continue to sell and distribute Sachsen paper.
The Swiss group will then convert the paper mill into a packaging board mill.
The Swiss family-owned Model Group, founded in 1882, develops and produces packaging made of solid and corrugated board. Operating 14 plants in Switzerland, Germany, Poland, the Czech Republic and Croatia, the group, which employs 4,225 people, achieved sales of CHF 859 million (EUR 783 million) in 2020.
In 2020, Stora Enso had already announced the closure of one of its newsprint machines at the Swedish mill in Oulu, reducing the group's annual newsprint capacity by 26% (read Stora Enso cuts newsprint production by a quarter ).
