HELSINKI, Finland--(BUSINESS WIRE)--Regulatory News:
Stora Enso Oyj (HEX:STEAV) (HEX:STERV) (STO:STEA) (STO:STER)
Stora Enso’s CEO Karl-Henrik Sundström says: “Stora Enso’s asset transformation is nearly completed and our focus is now on sales and innovations. We have successfully completed several major investments recently. We are now gradually decreasing our capital expenditure (excluding investments to biological assets) to the level of depreciation. In 2017, the estimated capital expenditure will be EUR 600–650 million, including EUR 100 million for biological assets.
Our consumer board mill in Beihai, China started up in May 2016, and is ramping up ahead of plan. We expect it to reach EBITDA break-even in the first quarter of 2018. Our kraftliner mill in Varkaus, Finland started up in October 2015, and reached EBITDA break-even during the third quarter of 2016. We expect it to reach EBIT break-even in the second quarter of 2017.
Majority of our portfolio is aimed at growth, and the sales of our growth businesses – Consumer Board, Packaging Solutions, Biomaterials and Wood Products – are increasing steadily. For our Paper division, the strategy is maximum cash generation, and currently it is well above the long term target. All divisions contribute to the cash flow, which supports our transformation into a renewable materials company. Our balance sheet is strong and we have been able to pay stable dividends also during our transformation period.
Today, our Capital Markets Day concentrates on two of our growth businesses. Our Biomaterials division focuses on strengthening its current pulp business. Demand for pulp keeps growing, especially in the segments selected in Stora Enso strategy. Stora Enso is also creating new platforms for growth with investments in extraction and separation technologies for wood fibres. For instance lignin as phenol replacement offers us big potential with attractive margins.
Our Wood Products division has transformed from a classic sawn producer into a leading provider of innovative wood-based solutions. As a leader in wooden building components and systems, we are in a good position to drive growth.”
Live webcast from Stora Enso’s Capital Markets Day starts at 15.00 EET (13.00 UK time). You are welcome to follow the presentations at http://edge.media-server.com/m/p/ddmehd62.
Stora Enso is a leading provider of renewable solutions in packaging, biomaterials, wooden constructions and paper on global markets. Our aim is to replace fossil based materials by innovating and developing new products and services based on wood and other renewable materials. We employ some 26 000 people in more than 35 countries, and our sales in 2015 were EUR 10.0 billion. Stora Enso shares are listed on Nasdaq Helsinki (STEAV, STERV) and Nasdaq Stockholm (STE A, STE R). In addition, the shares are traded in the USA as ADRs (SEOAY) on the International OTCQX over-the-counter market. storaenso.com (http://www.storaenso.com/)
STORA ENSO OYJ
This information was brought to you by Cision http://news.cision.com