HELSINKI, Feb. 25, 2022 /PRNewswire/ -- STORA ENSO OYJ
INVESTOR NEWS RELEASE 25 February
2022 at 8:30 EET
Stora Enso announced today that it has signed a letter of intent
to divest the Kvarnsveden site in Sweden to Northvolt. Due to structural decline
in demand for graphical paper, in April
2021 Stora Enso announced a plan to close its Kvarnsveden
paper production site. Founded in 1900, Kvarnsveden produced pulp
and paper for over 120 years until production ended in September 2021.
Northvolt is a European supplier of sustainable battery cells
and will develop the site into a battery manufacturing plant,
reusing and refurbishing the existing facilities and site
infrastructure. According to Northvolt, the gigafactory is expected
to start the first part of its operations in late 2024, and will
employ up to 1,000 people.
"Sustainability is the main priority for Stora Enso, and this
also has to be addressed in difficult times. Hence, a key focus
since our decision to close the site has been to find a new owner
that can continue Stora Enso's long and sustainability-driven
legacy at Kvarnsveden, to the benefit of the local society. Like
Stora Enso, Northvolt delivers modern and innovative solutions that
contribute to a climate-friendly future. Through this agreement,
Kvarnsveden will become a foundation for continued growth, both for
Northvolt and the city of Borlänge," says Per Lyrvall,
Sweden country manager at Stora
Enso.
The Kvarnsveden site has many advantages including availability
of skilled workforce as well as a railway link, a connection to the
national electricity grid, and the availability of clean water.
According to Northvolt, the site will be powered using 100 percent
clean energy, and will feature both cathode material and cell
production.
Peter Carlsson, Co-Founder
and CEO of Northvolt, comments: "Since Northvolt was founded, we
have focused on circular battery production, but this is the first
time we are reusing an entire production site. With its access to
energy, industrial water and the broad production know-how in the
region, Kvarnsveden is an optimal site for a gigafactory. We are
thrilled to be able to open a new chapter in Borlänge's history as
a global industrial hub."
The final agreement regarding the transaction is expected to be
signed in the next few months. Certain infrastructure and
equipment, including the boiler, are subject to separate processes
and are not included in the Northvolt scope. The transaction impact
on Stora Enso's operational EBIT or net debt is not considered
material.
For further information, please contact:
Carl Norell
Press officer
tel. +46 72 241 0349
Investor enquiries:
Anna-Lena Åström
SVP Investor Relations
Tel. +46 70 210 7691
Part of the global bioeconomy, Stora Enso is a leading provider
of renewable products in packaging, biomaterials, wooden
construction and paper, and one of the largest private forest
owners in the world. We believe that everything that is made from
fossil-based materials today can be made from a tree tomorrow.
Stora Enso has approximately 22,000 employees and our sales in 2021
were EUR 10.2 billion. Stora Enso
shares are listed on Nasdaq Helsinki Oy (STEAV, STERV) and Nasdaq
Stockholm AB (STE A, STE R). In addition, the shares are traded in
the USA as ADRs (SEOAY).
storaenso.com
STORA ENSO OYJ
CONTACT:
For further information, please contact:
Carl Norell
Press officer
tel. +46 72 241 0349
Investor enquiries:
Anna-Lena Åström
SVP Investor Relations
Tel. +46 70 210 7691
This information was brought to you by Cision
http://news.cision.com
https://news.cision.com/stora-enso-oyj/r/stora-enso-intends-to-divest-its-kvarnsveden-site-in-sweden-to-northvolt,c3514318
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https://news.cision.com/stora-enso-oyj/i/kvarnsveden,c3017007
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