After having stopped its sales and production activities in Russia at the beginning of March, and then sold its two sawmills at the end of April, the Finnish-Swedish paper group Stora Enso is now divesting its three corrugated packaging plants in Russia. The packaging plants in Lukhovitsy, Arzamas and Balabanovo, which employ 620 people, have been handed over to local management.
Stora Enso explains in a press release that "due to the uncertainties in the Russian market, local ownership and operation will provide a more sustainable long-term solution for these companies and their respective employees."
The three plants have a production capacity of 395 million m 2 of corrugated packaging, mainly used by the grocery, home improvement, confectionery and pet food segments in the Russian domestic market.
The sale of its factories, which generated first quarter revenues of 35 million euros "will have no significant impact on Stora Enso's annual sales and operating EBIT." . According to International Financial Reporting Standards (IFRS), the additional loss on the transaction will be approximately 55 million euro, consisting of translation differences. Stoae Enso has sales of EUR 10.2 billion in 2021.
