Stora Enso is to restructure the ownership of its forestlands in Finland and the US.
Its Finnish holdings of around 600,000ha and related business will be transferred into a new company, Tornator Oy, in July.
Stora Enso will retain minority ownership in the new company and sell the remaining shares to institutional investors by the end of the year. The book value of these assets is approximately euro 400m.
In the US it is putting about 130,000ha of forestland on the market in Wisconsin, Michigan and Minnesota. The book value of the assets is around euro 100m.
The aim of the restructuring plan is to free up capital and increase Stora Enso’s financial flexibility so it can develop its core businesses.
Tornator Oy will own and manage the former Stora Enso forestland, sell cutting rights and offer forest management services. The two companies will enter into a wood procurement agreement whereby Tornator will supply about 1.5 million m3 of timber annually to Stora Enso.
Stora Enso Metsä, the current existing wood procurement organisation in Finland, will remain responsible for Stora Enso’s wood procurement and the wood supply for the group’s Finnish mills.
