Stora Enso is investing heavily in bioproducts, pulp, paper and the next generation of higher-value engineered wood products.
“The separation of the Swedish forest assets was assessed to be the best alternative to enhance focus on respective businesses’ core strengths and market opportunities, maximising operational and shareholder value,” Stora Enso said in a media release. The move follows a strategic review launched in June 2025 and comes after the group sold 175,000 hectares of forest in a $900 million deal earlier this year.
Major shareholders Solidium Oy and FAM AB, holding 21% of shares and 55% of voting rights, have supported the plan. Stora Enso will continue to concentrate on renewable materials and packaging, while the new company will focus on value creation through forest management, renewable energy, and carbon sequestration.
Tuomas Hallenberg, Executive Vice President of Stora Enso’s Forest business, has been appointed President and CEO of the new Swedish forest company. “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.
“The separation and public listing of Stora Enso’s Swedish forest assets business will unlock value potential and focus on both the forest assets and industrial operations, enabling accelerated growth across each business. Consistent with Stora Enso’s commitment to maximise shareholder value, it will now continue preparations towards the public listing of the new company,” Jordan added.
Hans Sohlström, President and CEO of Stora Enso, said: “We are excited to now enter the next phase of this important chapter in our company’s history. The demerger will create a solid foundation for the independent growth of both companies. Moreover, the two companies would maintain a strategic relationship, where Stora Enso gains access to a long-term wood supply agreement with the new company, securing revenues for both parties.”
The two businesses will be linked by an 18-year wood supply agreement, covering around 9% of Stora Enso’s Nordic wood and fibre needs. The new company will be headquartered in Falun, Sweden, and listed on Nasdaq Stockholm and Nasdaq Helsinki.
“This transaction is planned to take place through a statutory partial cross-border demerger, with completion targeted for the first half of 2027,” Stora Enso said. The new entity is expected to become Europe’s largest listed pure-play forest company, strengthening its focus on sustainable forest management, renewable energy, and carbon sequestration, while allowing Stora Enso to concentrate on its renewable materials and packaging businesses.
The demerger is part of Stora Enso’s broader strategy to unlock value and enhance operational focus, providing both companies with independent growth platforms and long-term stability through strategic collaboration.
