Stora Enso Establishes Forest Division and Reporting Segment
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Stora Enso (Helsinki, Finland) is hosting its Forest and Wood Products Day for investors in Stockholm tomorrow. The focus is on recently acquired Swedish forest assets and the establishment of a new Forest division.
To increase transparency, Stora Enso will establish a Forest division and start reporting it separately at the beginning of 2020. The new Forest division will include Stora Enso’s Swedish forest assets (including the recently-acquired Bergvik Skog Väst AB) and its 41% share of Tornator with the majority of its forest assets located in Finland. The Forest division will also include wood supply operations in Finland, Sweden, Russia, and Baltic countries. Tree plantations in the southern hemisphere linked to local pulp mills continue to be reported as before under the Biomaterials and Consumer Board divisions. After establishing the new Forest division, segment Other reporting will include Group functions, logistics, and other operations.
Stora Enso’s CEO, Karl-Henrik Sundström, says: “As a major player in the bioeconomy, access to wood is critical for us. Taking forest assets under direct ownership gives us more flexibility to optimize our wood supply and operations. Furthermore, as wood is the single most important raw material and the biggest share of our costs, as well as a large part of the balance sheet, it will make sense to increase the transparency of reporting now, when we have successfully finalized the acquisition of Swedish forest holdings.”
Today, Stora Enso has forest assets valued at more than EUR 4.1 billion (land and biological assets) in its balance sheet, the highest value being of biological assets of EUR 3.6 billion among Nordic companies. In Sweden, Stora Enso owns 1.4 million hectares of forest, of which 1.14 million hectares are productive forest land with standing stock of 143 million m³.
