On may16,2022, Stora Enso announced that it had stripped off its three carton factories in Russia.

Stora Enso’s lukhovitsy, Arzamas and balabanovo carton plants in Russia have been stripped off to local management. Stora Enso’s assessment is that due to the uncertainty of the Russian market, local ownership and operation will provide more sustainable long-term solutions for these enterprises and their respective employees. The transaction will not have a significant impact on Stora Enso’s annual sales and operating EBIT. The first quarter results recorded an impairment loss of € 35million due to the declining business outlook of these businesses. According to IFRS, the additional loss of the transaction will be approximately EUR 55million, mainly including currency translation adjustments to be recorded at the closing date. These costs are considered items that affect comparability.

The stripped factories are located in lukhovitsy, Arzamas and balabanovo, employing about 620 employees. The total annual capacity of corrugated packaging is 395million square meters. These factories mainly produce corrugated packaging for groceries, home decoration, candy and pet food in the Russian domestic market. Stora Enso announced on march2,2022 that it would stop all production and sales in Russia until further notice. On April 25, Stora Enso announced that it would divest its two sawmills and forest businesses in Russia to the local management.

As part of the global bioeconomy, Stora Enso is a leading supplier of renewable products such as packaging, biomaterials, wood structures and paper. It is also one of the largest private forest owners in the world. Stora Enso has about 22000 employees and sales of 10.2 billion euros in 2021. Stora Enso shares are listed on NASDAQ Helsinki oy (steav, sterv) and Nasdaq Stockholm AB (STE a, ste R). In addition, these shares are traded in the United States in the form of ADR (seoay).