Stora Enso will put 12% of its forest assets in Sweden up for sale in a move to reduce debt and strengthen its balance sheet, the Finnish forestry group has said.
The sale is in a preparation phase and there is no information about the buyer or the schedule of a possible deal, Stora Enso's press officer Ingrid Peura said.
The company's shares rose 6.7% by 08:32 GMT, the top performer on Europe's benchmark STOXX 600 index and on track for their biggest single-day increase since 25 July, if the gains hold.
Challenges
High wood costs, weakening demand and uncertainties in the pulp market have put the Nordic forestry industry under pressure and led Stora Enso to announce job reductions in February.
The company owns 1.4 million hectares of forests in Sweden, it said in the statement.
Forests cover around 28 million hectares of Sweden's total land area of 41 million hectares, according to data from the Swedish Forest Industries Federation.
Second-Quarter Performance
In July, Stora Enso said it expects pressure from high wood costs and market uncertainties to continue throughout 2024, after posting lower-than-expected revenue in the second quarter of the year.
The company said it expects a 'gradual market recovery' in 2024 and reported its adjusted operating profit in the quarter at €161 million, roughly in line with €160 million expected by analysts.
However, it said that high fibre costs will affect its packaging materials unit in the second half of the year, while demand and price fluctuation could continue through the end of 2024.
Elsewhere, a new survey has revealed that only one-fourth (25%) of packaging and retail industry professionals consider their strategy for sustainable packaging as ‘robust and achievable’.
