Stora Enso acquires land for mill site in China

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The Finnish-Swedish pulp and paper manufacturer Stora Enso announced on April 28th that it has acquired a total of 250 hectares of industrial land in China for possible future use as a mill site.
      The prospective site is in Beihai City in Guangxi, on the coast of the South China Sea, quite close to the Vietnam border, and its purchase price is about EUR 27 million. Stora Enso has been expanding its forest plantations in Guangxi, planning to establish a pulp and paper/board mill in the area.
     
Stora Enso stressed that no formal decision concerning the investment has been made as yet. A prerequisite for the investment decision is that the company is able to expand its present eucalyptus plantations in a way that will secure a sufficient fibre base.
      Currently, Stora Enso has some 90,000 hectares of land for forest plantations, while the company’s goal is to expand its plantation area to 160,000 hectares.
     
Stora Enso reported further that the United Nations Development Programme (UNDP) has assessed the Guangxi plantations, finding no major environmental or social issues that could have an impact on Stora Enso’s plantation project in Guangxi.
      Stora Enso already owns and operates a fine paper mill in China.


Links:
  Stora Enso Stock Exchange Release (April 28th, 2007)

Helsingin Sanomat