All subjects
Biochemicals & Materials

Stora Enso to divest Dawang Paper Mill stake to joint venture partner Huatai

Finland-headed forest industry major Stora Enso Oyj has signed an agreement to divest its 60 percent equity stake in the Dawang Paper Mill in China, to its joint venture partner, Shandong Huatai Paper. Following the transaction, expected to be concluded by the end of 2019, Stora Enso will no longer have paper production in China.

An error occurred

You are logged in as subsbriber at Bioenergy International, but something is wrong.

On your profile you can see what subscriptions you have access to and more information.

Is some of the information wrong – please contact our customer service.

Please reload the page

We could not ascertain if you are logged in or not. Please reload this page.
Bioenergy International premium

Do you want to read the whole article?

Only logged in payed subscribers can read all contents on bioenergyinternational.com
As an subscriber you get:
  • Six editions per year
  • Full access to all digital content
  • The E-magazine Bioenergy international
  • And more ...
Euro notes and coins
Stora Enso has signed an agreement to divest its 60 percent equity stake in the Dawang Paper Mill in China, to its joint venture partner, Shandong Huatai Paper. Following the transaction, expected to be concluded by the end of 2019, Stora Enso will no longer have any paper production in China.

According to a statement, the joint venture Stora Enso Huatai (Shandong) Paper Co Ltd operates the Dawang Paper Mill at Dongying in Shandong province in China. The mill has an annual production capacity of 140 000 tonnes of super-calendered (SC) magazine paper and other publication paper grades based on recovered fibre.

The transaction is expected to be completed by the end of 2019 and it will not have any material impact on Stora Enso’s operational EBIT. Following the transaction, Stora Enso’s net debt will decrease by approximately EUR 22 million and annual sales by approximately EUR 60 million. After this transaction, Stora Enso will not have any paper production in China.

We have had a joint venture partnership with Huatai over the past ten years of operation and believe Huatai can develop Dawang Mill for the long-term benefit of Chinese paper customers, commented Kati ter Horst, EVP, Stora Enso’s Paper division.

The JV partner Shandong Huatai Paper Co. Ltd is a publicly-listed company on the Shanghai Stock Exchange, China with sales of EUR 1.89 billion in 2018. The company is based in the city of Dongying, China and its primary products include newsprint, coated paper and offset paper.

Most read on Bioenergy International

Get the latest news about Bioenergy

Subscribe for free to our newsletter
Sending request
I accept that Bioenergy International stores and handles my information.
Read more about our integritypolicy here