Stora Enso has divested its three corrugated packaging plants in Russia, citing uncertainties in the country’s market as a key driver.
The company says the divestment of its sites in Lukhovitsy, Arzamas and Balabanovo to local ownership and operations will provide a “more sustainable long-term solution” for these facilities and their employees.
A statement from Stora Enso said: “The transaction will have no material impact on Stora Enso’s annual sales and operational EBIT. Due to reduced business prospects for these businesses, an impairment loss of €35 million was recorded in the first quarter result. The additional loss on the transaction under IFRS will be approximately €55 million, consisting mainly of currency translation adjustments to be recorded at the closing date. The expenses are considered as items affecting comparability.”
The three sites currently employ around 620 people, and have a total annual capacity of 395 million m² of corrugated packaging. They each produce corrugated packaging for the grocery, home improvement, confectionery and pet food categories in the domestic Russian market.
In March 2022, Stora Enso announced that it would stop all production and sales in Russia “until further notice” following the country’s attack on Ukraine.
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