Stora Enso exits Russian operations
Wednesday 4 May 2022
As a result of the uncertainties of the Russian market, “local ownership and operation can provide a more sustainable long-term solution for these business operations and the employees working there,” Stora Enso said.
The two sawmills, located in Novgorod and Karelia, in the western and northwestern parts of Russia respectively, together employ a about 332 workers, according to the company. Both sawmills produce a range of timber and pellets. Stora Enso’s forest operations employ about 170 workers, through which it supplies wood to the sawmills, the company said.
Stora Enso’s deal is expected to conclude in the second quarter of this year and won't have a material impact on its annual sales, the company said.
The company had already halted all production and sales in Russia on March 2, about a week after Russia invaded Ukraine on Feb. 24. Stora Enso said it is in the process of finding “a sustainable solution” for the future of three packaging plants in Russia.
Souce: The Wall Street Journal
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