Stora Enso, Helsinki, Finland, has completed the divestment announced on June 1, 2016, of its Kabel coated mechanical paper mill in Germany to Kabel Premium Pulp & Paper GmbH, owned by a German based investor group. The total cash consideration for the divestment is approximately EUR 25 million, subject to final closing adjustments.

The loss on disposal amounts in total to EUR 15 million. The effect on operating profit is approximately EUR 5 million, and the negative tax impact is approximately EUR 10 million. These were recorded as an item affecting comparability (IAC) in Stora Enso’s second quarter 2016 results. Approximately EUR 17 million of pension liabilities were transferred to the new owner with the transaction.

Based on 2015 annual figures, the transaction decreases Stora Enso’s annual sales by approximately EUR 300 million and simultaneously decreases Stora Enso’s annual coated mechanical paper production capacity by around 485,000 metric tons. The Kabel Mill employs approximately 540 people and was part of Stora Enso’s Paper division.