Uncertain about its future in Russia, Stora Enso, the Finland-based forestry firm, announced on Monday (4-25-22) that it will be selling its two sawmills, one in Karelia and the other in Novgorod, along with the Russian forest operation that supplies wood to both mills to local management.
According to the company, approximately 330 people are employed at those sawmills and an additional 170 workers in forest operations. The mills have an annual capacity of 350,000 cubic meters of sawn timber, and the forest operations include harvesting rights of roughly 370,000 hectares.
The company said the deal is expected to conclude during the second quarter and will not have an impact on its annual revenue or operating profit.
Stora Enso continues to hold three packaging plants in Russia, but production at the facility was halted following Russia’s invasion of Ukraine. The company said it is looking for a responsible solution for the future of these plants.
In early March, Stora Enso announced plans to suspend all production activities in Russia, as well as discontinue imports and exports to and from the country.
FEA compiles the Wood Markets News from various 3rd party sources to provide readers with the latest news impacting forest product markets. Opinions or views expressed in these articles do not necessarily represent those of FEA.