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Stora Enso Acquires Mill Site Land at Beihai in China

2007-04-28 09:42 6659

HELSINKI, April 28 /Xinhua-PRNewswire/ -- Stora Enso has signed a mill site land acquisition agreement with Beihai City Government in Guangxi, China. The agreement will provide Stora Enso a total of 250 hectares of industrial land for possible future use as a mill site. The mill site is by the sea in the Tieshangang Industrial Zone of Beihai City in the north of Beibu Gulf in the South China Sea, near Vietnam. The purchase price is about EUR 27 million.

Stora Enso's Board of Directors has taken no formal decision concerning investment in a mill at Beihai. However, this acquisition would facilitate a future investment. A prerequisite for the investment decision is that the acquisition of land use rights develops in a way that will secure a sufficient fibre base.

The area has suitable soil and a favourable climate for eucalyptus plantations. It is intended to create a sustainably managed fibre base of 160 000 hectares to support establishment of an integrated pulp and paper/board mill in Guangxi. Stora Enso's development of the plantations in Guangxi began in 2002.

To ensure sustainable development of its plantations in China, Stora Enso invited the United Nations Development Programme (UNDP) to carry out an Environmental and Social Impact Assessment (ESIA) of the Guangxi plantations in 2005 and 2006. The assessment found that there are no major environmental or social issues that could have an impact on Stora Enso's plantation project in Guangxi.

BPrevious press releases concerning Stora Enso's activities of Forest Pulp and Paper Integration Project in China are available at http://www.storaenso.com/press .

-- 25 September 2006: Stora Enso further expands

its plantations in Guangxi

-- 20 June 2006: Stora Enso increases loan

facility for its operations in China

-- 29 March 2006: Stora Enso to sign an agreement

for co-operation with UNDP China

-- 10 November 2005: Stora Enso strengthens its

presence in Guangxi

-- 10 June 2005: Stora Enso signs loan agreement

with International Financing Corporation

-- 31 March 2005: UNDP to Assess Environment and

Social Impact of a Forestry Investment Project

in Guangxi, China

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About Stora Enso

Stora Enso is an integrated paper, packaging and forest products company producing publication and fine paper, packaging board and wood products – all areas in which the Group is a global market leader. Stora Enso's sales totalled EUR 14.6 billion in 2006. The Group has some 44 000 employees in more than 40 countries on five continents. Stora Enso has an annual production capacity of 16.5 million tonnes of paper and board and 7.4 million cubic metres of sawn wood products, including 3.2 million cubic metres of value-added products. Stora Enso's shares are listed in Helsinki, Stockholm and New York.

Source: Stora Enso
Keywords: Machinery
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