Stora Enso sells stationery to German owner of Lidl Schwarz Group

The Stora Enso company logo is seen near a packaging factory in Riga, Latvia September 18, 2012. REUTERS/Ints Kalnins/File Photo

Join now for FREE unlimited access to Reuters.com

HELSINKI, Sept 13 (Reuters) – Finnish forestry group Stora Enso (STERV.HE) said on Tuesday it would sell its Maxau paper production site in Germany to Schwarz Group, owner of discount supermarket chains Lidl GB and Kaufland .

The transaction is part of Stora Enso’s plan to divest four of its five remaining paper production sites as it focuses on packaging.

The company expects to recognize a disposal gain of approximately €50 million ($50.7 million) upon the expected closing of the agreement in the first quarter of 2023. The German site has an enterprise value of approximately 210 million euros, he said.

Join now for FREE unlimited access to Reuters.com

“Schwarz’s plan is to continue paper production at the site, and the 440 employees belonging to the Maxau mill organization will be part of the transaction,” Stora Enso said in a statement.

In a strategy update, Stora Enso said it aims to generate more than 60% of group sales from renewable packaging by the end of the decade.

“By 2030, we aim to have significantly lower exposure to market pulp and reduce cyclicality by increasing integration and growth in renewable packaging, building solutions as well as new innovative biomaterials in our portfolio. “, did he declare.

Last week, Stora Enso announced that it had agreed to buy Dutch packaging company De Jong for an enterprise value of 1.02 billion euros ($1.02 billion).

($1 = 0.9867 euros)

Join now for FREE unlimited access to Reuters.com

Reporting by Anne Kauranen; Editing by Kirsten Donovan

Our standards: The Thomson Reuters Trust Principles.