On 18 June 2025, Stora Enso announced the initiation of a strategic review of its Swedish forest assets as part of its stronger focus on renewable materials and packaging.
After assessing various options, and having completed the divestment of approximately 175,000 hectares of forest land, for an enterprise value of €900m, the Board of Directors of Stora Enso has completed the strategic review. The Board has decided to initiate preparations for the separation of the Swedish forest assets business into a new publicly-listed Swedish company through a statutory partial cross-border demerger of Stora Enso.
Stora Enso’s major shareholders Solidium Oy and FAM AB support the contemplated demerger.
According to the assessment of the Board, the demerger of the Swedish forest assets business into a new company would be the best alternative to unlock the full potential of both the Swedish forest assets and Stora Enso’s core packaging business as well as to optimise capital allocation and reduce complexity. Moreover, the demerger will enable enhanced focus on the respective companies’ core strengths and market opportunities, thus allowing the respective businesses to be assessed on their own merits; maximising operational and shareholder value.
Stora Enso will continue to lead in renewable materials and packaging, with strong market positions and more flexible, integrated and cost-competitive production. The new company will emerge as Europe’s largest listed pure play forest company, owning a distinct class of assets with expected long-term value appreciation for example, from a naturally growing standing stock.
Tuomas Hallenberg, currently Executive Vice President of Stora Enso’s Forest business area, has been appointed President and CEO of Stora Enso’s Swedish forest business.
The relationship between the new company and Stora Enso will remain strategically important. In connection with the demerger process, Stora Enso intends to enter into a long-term wood supply agreement for 18 years with the new company, with non-exclusive volumes available for other customers increasingly over the duration of the agreement. The agreement will provide the new company with a committed demand base as it grows its own customer base, lowering the risk. The wood prices will be set at market-based rates. In addition to the intended wood supply from the new company, which would currently represent approximately 9% of Stora Enso’s wood and fibre supply in the Nordics region, Stora Enso will retain strategic vertical integration through its other forest assets.
