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Storaenso will adjust its forest assets in Finland and the United States

the Storaenso board of directors has approved a plan to adjust its forest assets in Finland and the United States through two separate transactions guided by the inner surface of the cylinder. These measures are in line with Storaenso's strategy of releasing funds and improving financial adaptability to develop its core business. This adjustment involves about 730000 hectares of forest land, with a book value of about 500million euros

in addition to the forest land to be adjusted, Storaenso also owns forests in Sweden, Portugal and Canada, which are not affected by this adjustment. However, an investigation on how to release funds from Swedish forests is about to begin. Storaenso owns 1.9 million hectares of forest land in Sweden, with a book value of about 700million euros. These forests can meet a quarter of the wood demand of Storaenso's Swedish factory, so ensuring this supply has become an important premise, which also makes it particularly difficult to deal with these forests

storaenso has forests with a book value of about 1.3 billion euros in Finland, the United States and Sweden, with a market value of about 2.5 billion euros

Storaenso's strategy is to ensure that the most competitive fibers can be obtained from social and environmental channels. Therefore, storae has attracted a large number of visitors, and NSO does not want this adjustment plan to affect the implementation of this strategy. Every year, the forest owned by Storaenso can meet the wood demand of 6% of the group's factories in Finland and 10% of the group's factories in the United States


storaenso plans to set up its 600000 hectares of forests and related businesses in Finland into a new company called tornatoroy in July 2002, and will retain only a small part of the ownership of tornatoroy and sell the majority of its equity to group investors at the end of 2002

the book value of these forest products is about 400million euros, and the market price is about 500million euros. Recently, the average selling price of large areas of forests in Nordic countries is about 800 euros to 1000 euros per hectare

tornator will own and manage the original forest land of Storaenso, sell cutting rights and provide forest management services. Storaenso and torn · ator plan to reach a timber supply plan. Tornator will provide 1.5 million cubic meters of timber to Storaenso every year ·

tornator will employ about 50 employees who receive salaries. 5. The hydraulic system adopts differential mechanism and about 180 forest workers, who will be transferred or recruited from the existing employees of Storaenso. Negotiations with employees are about to begin

after adjustment, there are still plants with an area of about 4000 hectares and a book value of 32million euros and some surrounding areas owned by Storaenso

storaensometsa (forest), the current Finnish timber procurement agency, will still be responsible for the procurement of timber from Storaenso and the supply of timber to the group's Finnish factories

mandatum CO and morgansta nley (Morgan Stanley) have been named as financial advisers of the Finnish forest products adjustment transaction


storeenso North America is selling about 130000 hectares of forest land in Wisconsin, Michigan and Minnesota. Storaenso group is planning to directly transfer these forest products to investors in the second half of this year

the book value of these woodlands is about 100million euros. Storaenso North America will enter into an agreement with potential buyers of Johnson Matthey, who have predicted that the sales of its catalyst business will slow down in the next few years

about 95% of the forests planned to be sold are located in Wisconsin and are subject to the local forest management law. After the transfer, the new owner must abide by the forest management law and reserve the vast majority of the forest land for fishing and hunting

storaenso forest resources will continue to be responsible for supplying timber from Storaenso North America to all U.S. factories

financial impact

the financial impact of this adjustment of forest assets has been calculated according to the current book value and market value. The goal of Storaenso's asset liability ratio is to maintain or lower than 0.80. The transfer of forests in Finland and the United States will reduce Storaenso's asset liability ratio by 0.08 (0.53 at the end of the year); The occupied capital will be reduced by 500million euros, and the return on investment will be 0.2 percentage points higher than the 10.8% in 2001 (the return on investment target for this operating cycle is 13%). The transfer income will be subject to asset sale income tax in accordance with local laws and regulations

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