Finnish paper and forestry company Stora Enso Oyj said it had sold the three corrugated paper packaging plants in Russia to local companies.
The divested factories (in Lukhovitsi, Arzama, Balabanovo) employ about 620 people and produce mainly corrugated packaging for groceries, home improvement, confectionery and pet food in the domestic Russian market.
“Stora Enso’s assessment is that due to uncertainties in the Russian market, local ownership and operation will provide a more sustainable long-term solution for these activities and their employees,” it said in a statement.
The transaction will not have a significant effect on the company’s annual sales or operating profit before interest and taxes.
Stora Enso recorded an impairment loss of € 35 million in the first quarter results and an additional loss of € 55 million, mainly related to currency conversion adjustments, will be recorded at closing.
The move will complete the company’s exit from Russia, after last month it agreed to outsource forestry activities in the country to a local administration.
Source: Capital
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