Stora Enso to Spin Off Swedish Forest Assets, Creating Europe's Largest Pure-Play Forest Company

Strategic Demerger to Create New Forestry Giant

Stora Enso, a leading provider of renewable materials, has announced its intention to spin off its Swedish forest assets into a new, independent publicly listed company. This strategic move, expected to be completed in the first half of 2027, will establish what is projected to be Europe's largest listed pure-play forest company. The new entity will encompass over 1.2 million hectares of forest land in Sweden, with a fair value estimated at approximately 5.7 billion EUR as of September 30, 2025.

The decision follows a comprehensive strategic review initiated in June 2025, aimed at optimizing shareholder value and reducing group complexity. All shares in the newly formed company will be distributed to existing Stora Enso shareholders. The new company is intended for a dual listing on Nasdaq Stockholm and Nasdaq Helsinki, with its headquarters located in Falun, Sweden.

Enhanced Focus and Value Creation

The demerger is designed to sharpen the strategic focus of both entities. Stora Enso will continue to concentrate on its core businesses of renewable materials and packaging, leveraging its strong market positions and integrated production capabilities. Meanwhile, the new forest company will pursue value creation through dedicated forest management, renewable energy initiatives, and carbon sequestration.

Tuomas Hallenberg, currently Executive Vice President of Stora Enso's Forest business, has been appointed President and CEO of the new forest company. This leadership appointment underscores the commitment to the independent growth and specialized management of the forest assets.

Operational Linkages and Shareholder Support

A long-term 18-year wood supply agreement will strategically link the two companies. This agreement will ensure that Stora Enso secures approximately 9% of its Nordic wood and fiber supply from the new entity, maintaining a crucial operational connection.

The move has garnered significant support from Stora Enso's major shareholders, Solidium Oy and FAM AB, who collectively hold approximately 21% of shares and 55% of voting rights. This backing highlights confidence in the strategic rationale behind the demerger. The announcement follows a prior divestment of approximately 175,000 hectares of forest land earlier in 2025, which generated an enterprise value of 900 million EUR.

Outlook

The separation is subject to shareholder and regulatory approvals. This strategic realignment is anticipated to unlock the full potential of both the Swedish forest assets and Stora Enso's core packaging business, optimizing capital allocation and fostering accelerated growth across each distinct business.