Stora Enso has now divested its three corrugated packaging plants in Russia. The company’s Lukhovitsy, Arzamas and Balabanovo packaging plants have been divested to local management. Stora Enso’s assessment is that due to the uncertainties in the Russian market, local ownership and operation will provide a more sustainable long-term solution for these businesses and their respective employees.
The divested sites employ approximately 620 people and have a total annual capacity of 395 million sqm of corrugated packaging. The sites primarily produce corrugated packaging for grocery, home improvement, confectionery and pet food segments in the domestic Russian market.
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 €35m was recorded in the first quarter result. The additional loss on the transaction under IFRS will be approximately €55m, consisting mainly of currency translation adjustments to be recorded at the closing date. The expenses are considered as items affecting comparability.
Stora Enso announced on 2 March 2022 that it would stop all production and sales in Russia until further notice. On 25 April, the company announced the divestment of its two sawmills and forest operations in Russia to local management.