Stora Enso completed its strategic review of its Swedish forest assets and will proceed with a statutory partial cross-border demerger, placing the assets into a new publicly listed company. The planned separation, supported by major shareholders Solidium Oy and FAM AB, would allocate all shares in the new entity to existing shareholders in proportion to their holdings. The new company is intended to be listed on Nasdaq Stockholm and Nasdaq Helsinki, with its headquarters in Falun, Sweden.

The review concluded that separating the Swedish forest assets provides the most straightforward path to unlocking long-term value for both the forest business and Stora Enso’s core renewable materials and packaging operations. The new company will comprise more than 1.2 million hectares of forest land valued at approximately EUR 5.7 billion as of September 2025. Stora Enso will retain its position in packaging and bio-based materials, supported by more flexible, integrated and cost-competitive production structures. The company has also divested roughly 175,000 hectares for an enterprise value of EUR 900 million as part of the overall assessment.

According to the Board, the demerger will allow each business to be evaluated on its own merits while improving capital allocation and reducing organisational complexity. The forest company is positioned for stable long-term returns driven by standing stock growth, land value appreciation, renewable energy initiatives, and carbon sequestration opportunities. Tuomas Hallenberg, currently Executive Vice President of Stora Enso’s Forest business, has been appointed President and CEO of the forest business during the transition.

“The Board’s decision to move forward with the demerger marks a milestone in the creation of the largest listed pure play forest company in Europe,” said Kari Jordan, Chair of Stora Enso’s Board of Directors. CEO Hans Sohlström added that the demerger creates a foundation for independent growth while maintaining a strategic relationship, including plans for an eighteen-year wood supply agreement that provides demand security for the new company and long-term supply for Stora Enso.

The separation remains subject to approval by Stora Enso’s General Meeting, regulatory clearance, and required consultation processes. Stora Enso expects to announce the formal demerger plan in the second half of 2026, with completion anticipated during the first half of 2027.