Stora Enso to sell off forest assets in Sweden to reduce debts 

Stora Enso is preparing to sell off approximately 12% of its total forest assets in Sweden, which total over 1.4 million hectares. The company has begun implementing a new legal structure for its Swedish forest assets to facilitate the potential sale. No other information regarding potential buyers has yet been announced. 

A potential transaction would be subject to agreeing terms and conditions with investors, including a long-term wood supply and a forest management agreement. The company said a sale would reduce its debt and strengthen the financial value of its forest holdings. 

Stora Enso is currently one of the largest private forest owners in the world, with over 2.02 million hectares valued at over €8.7 billion (US$9.5 billion). The company has approximately 20,000 employees and made €9.4 billion (US$10.3 billion) in sales last year. 

The announcement comes after Stora Enso was recently found to have accidentally caused serious environmental damage in Finland, where internal communications errors caused logging machinery to cross protected wildlife areas and destroy the habitats of endangered species. 

CEO Hans Sohlström said the company’s “credibility has taken a serious blow,” following the discovery, and investors announced they would be investigating the issue and considering potential divestments.