Stora Enso has announced it will sell its 60 percent stake in the Dawang publication paper mill in Dongying, China. The mill is operated by a joint venture. The company’s joint venture partner Shandong Huatai Paper is said to take over the entire mill. The transaction is scheduled to be completed by the end of the year.
The Dawang paper mill has a production capacity of 140,000 tpy and produces SC paper as well as other recycled publication paper grades. It is Stora Enso’s only paper mill in the country. The company still produces around 390,000 tpy of consumer board at one site as well as 1 billion packaging units at four locations in the country.
Stora Enso did not disclose the transaction value but explained that its net debt will decrease by approximately €22m and annual sales by around €60m following the divestment.
The joint venture partner Shandong Huatai Paper is based in Dongying and produces primarily newsprint, coated paper and offset paper. The company had sales of €1.89bn in 2018.