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Stora Enso turns a new page in USA

Wednesday, 26 September 2007
By Print21

Swedish-based Stora Enso bails from the US market, selling its North American paper operations to NewPage Holding Corporation for US $520 million.

 

The new company will be known simply a NewPage, with the transaction expected to be finalised during the first quarter of 2008. Ridding itself of the North American company will allow for Stora Enso to concentrate solely on the European market, according to CEO Jouko Karvinen.

"The divestment will simplify our group structure and strengthen our focus on Europe as well as Stora Enso’s growth markets," he said. "This is the first major step in focussing our operations to improve the long-term earning of Stora Enso."

While the European company hits the road to recovery, NewPage is expected to become a key player in the paper market when it opens up next year.

"We believe that by combining Stora Enso’s North American operations with those of NewPage, owned by Cerberus Capital, a leading private equity firm, we are contributing to the formation of a high attractive player in the North American paper industry," Karvinen said.

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