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.
© FoodBev Media Ltd 2023
World Beverage Innovation Awards – NOW OPEN FOR ENTRIES!
The awards celebrate excellence and innovation across the global beverage industry. Don’t miss out on having your innovations recognised on a global scale.
Deadline for entries 23 July – enter now!
Don’t get left behind
Start your free Foodbev magazine trial today and join thousands of fellow industry professionals in receiving food and drink trends direct to our business.
Click here to start your free trial
Your privacy We use small files known as ‘cookies’ to enhance your experience of the FoodBev website and analyse site-traffic. Read about how we use cookies or how you may control them in our updated privacy policy and cookie policy. If you continue to use this site, you consent to our use of cookies. Click the ‘OKAY‘ button at the top right of this panel to accept or click here for more information.