Stora Enso selling sawmills in Russia to mgmt, to take loss of 60 mln euros

MOSCOW. April 25 (Interfax) - Stora Enso, Europe's largest lumber producer by capacity, is selling its sawmills in Russia to local management, the Scandinavian company announced on Monday.

Stora Enso owns the Impilakhti sawmill in Karelia and Nebolchi sawmill in Novgorod Region with combined capacity to produce 350,000 cubic meters of lumber annually. The legal entities of these sawmills, Setles LLC and Setnovo LLC, respectively, closed 2021 with net profit of 1.4 billion rubles on revenue of 4.5 billion rubles and 1.3 billion rubles on 4.9 billion rubles, the SPARK-Interfax system showed.

The deal is expected to be closed in the second quarter. "Due to decreased business prospects on these businesses, an impairment loss of EUR 70 million has been recorded in the first quarter result. The additional loss on the transaction under IFRS will be approximately EUR 60 million, consisting mainly of currency translation adjustments to be recorded at the closing date," Stora Enso said.

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