Metsä Board Divests Alizay Mill Assets in France
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Metsä Board Corp., a part of Finland-based Metsä Group, has divested the property and production assets of its Alizay mill site in France to Conceil Général l'Eure for EUR 22 million. Conceil Général l'Eure plans to sell the Alizay property and assets to one or several other operators.
Metsä Board had permanently shut down paper production at Alizay in early 2012, following the shutdown of pulp production in 2010, as part of the company's strategic transformation from a paper producer to a paperboard company. Together with local authorities, the company had undertaken a voluntary reindustrialization project to create jobs and draw new businesses to the site.
EUWID Pulp & Paper, Germany, reports that Thai paper manufacturer Double A, simultaneously with the sale to Conceil Général l'Eure, has taken over paper operations of the fine paper mill in Alizay for an amount of EUR 18 million. Double A reportedly has plans to restart paper operations in Alizay in four months, and will continue production of office paper with an unchanged capacity of 300,000 metric tpy. The remaining parcels and properties are to be managed by EPFN (Etablissement Public Foncier de Normandie), which plans to create a river port, among other things, EUWID added.
Metsä Board noted that divestment of the Alizay assets does not impact its annual sales and does not have any material impact on operative results. Related to the divestment, Metsä Board will book approximately EUR 16 million in positive non-recurring items in the Paper and Pulp business area's operating result. Of the non-recurring items, EUR 11 million reversal of impairment according to IFRS5 will be booked in the 4Q 2012 operating result and EUR 5 million capital gain and reversal of provisions in the 1Q 2013 operating result.
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