Kable LWC and MWC paper mill is to be sold to a group of German investors, including Kübler and Niethammer Papierfabrik.
Stora Enso announces it has signed an agreement for the divestment of its Kabel coated mechanical paper mill in Germany. The mill is to be sold to Hagen-Kabel Pulp & Paper GmbH, a newly-formed company owned by a Germany based investor group, including magazine and packaging paper manufacturer Kübler and Niethammer Papierfabrik (K&N Paper).
Stora Enso puts the total cash consideration for the sale of the Kabel mill assets at €23m. The transaction is expected to be concluded in the third quarter this year. The divestment is said to reduce Stora Enso annual sales by approximately €300m.
Kabel paper mill employs 540 people and houses two paper machine with an installed capacity of 485,000 tpy of light weight (LWC), middle weight (MWC) and heavy weight (HWC) coated mechanical papers. Stora Enso will reportedly continue to produce the Nova Press brand at its Veitsiluoto Mill in Finland.
According to Stora Enso, the new owners is taking over all the Kabel mill employees and plans to further develop the site.