Stora Enso to sell 12% of Its Swedish forest assets, totaling 1.4 million hectares

Posted on October 4, 2024   |  

Stora Enso is planning to sell 12% of its forest land in Sweden to help lower its debt and improve its financial health.

The sale is still being prepared, and no details about the buyer or timeline have been shared yet.

Rising wood costs, weaker demand, and challenges in the pulp market have created pressure on the Nordic forestry sector, leading Stora Enso to cut jobs earlier this year.

The company owns 1.4 million hectares of forest in Sweden, which makes up a significant part of the country's 28 million hectares of forested land.

Stora Enso expects the market to recover slowly by 2024.

It reported an adjusted operating profit of €161 million for the quarter, in line with analyst expectations.

However, high fiber costs are expected to affect its packaging materials unit in the second half of 2024, with continued uncertainty in demand and pricing.