Stora Enso announced its decision to permanently discontinue the production of dissolving pulp, which is used around the world to produce viscose (textile fibers or Lyocell).
Stora Enso said that after a review of its strategic agenda, the company will focus on certain business segments that have the potential for future growth, namely packaging, wooden construction and biomaterials innovation from lignin.
In a written statement, Stora Enso said, "As a consequence of our strategic direction, we are in the process of exiting the segment of dissolving pulp for viscose production globally. This segment is not core for us and stands for only a small part of our overall business.
"Dissolving pulp is produced at Stora Enso's Enocell mill, which currently produces both standard and dissolving pulp grades. Production at the Enocell mill will continue with other types of pulp grades than dissolving pulp and for other end uses than viscose."
Currently, the Enocell Mill in Uimaharju, eastern Finland, produces softwood pulp and dissolving pulp and has an annual capacity of 490,000 tonnes. The mill, founded in 1967, has 180 employees.
In closing, Stora Enso explained, "As we always do, when taking business decisions, we have looked at the matter holistically considering strategy, sustainability and financials. Our strategic direction remains in line with what we communicated on the Capital Markets Day in November 2020 and exiting our dissolving pulp business for viscose production will not have material impact on our financial results. We are currently in a silent period and will come back to the topic in connection to our Q1 report on April 23."
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