The three corrugated packaging facilities in Russia have a total production capacity of almost 400 million m² and employ about 620 people.
Stora Enso has divested its packaging operations in Russia. The company's three packaging facilities in Lukhovitsy, Arzamas and Balabanovo have been sold to local managament, the company announced. Stora Enso had stopped all activities in Russia in early March following the country's aggression on Ukraine. In late April, the company already agreed to sell its sawmilling and forest operations to local managament.
The three packaging plants in Lukhovitsy, Arzamas and Balabanovo produce corrugated packaging for grocery, home improvement, confectionary and pet food segments. Stora Enso puts total production capacity of the three packaging plants at 395,000 m².
"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 company said.
The transaction is said to have no material impact on Stora Enso's annual sales and operational Ebit. The company already recorded an impairment loss of €35m in the first quarter due to reduced prospects for these businesses. "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 explained.