The divestment of Stora Enso’s (Finland) entire 80% shareholding in the Arapoti magazine paper mill to Papeles Bio Bio, a Chilean paper producer, has been completed. The divestment plan was announced Dec. 31, 2015.

The consideration for the divestment of the shares is approximately EUR 17 million. The loss on disposal amounts to approximately EUR 59 million of which EUR 31 million was recorded as a non-recurring item in Stora Enso’s fourth quarter 2015 results. The remaining approximately EUR 28 million is a cumulative translation adjustment loss, which will be recorded as a negative non-recurring item on operating profit in Stora Enso’s first quarter 2016 results, as announced earlier.

The transaction reduces Stora Enso’s net debt by approximately EUR 12 million. Based on 2015 annual figures, the transaction decreases Stora Enso’s sales by approximately EUR 100 million.

The Arapoti mill is the only producer of coated magazine paper (LWC) in South America. The majority of its production is sold to the domestic market and the rest to other Latin American countries. The mill has an annual production capacity of 185 000 metric tpy of LWC, and it employs 320 people.