The Beihai mill started operations in 2016. It has a mechanical pulp mill and a consumer board line serving the Chinese market.

Stora Enso has decided to discontinue the sales process for its Beihai board mill site and forestry business in Guangxi region, southern China. The company said that it "is of the view that the value in own use of the assets exceeds the achievable transaction value, and has therefore chosen to retain these operations within the Group."

In December of 2022, Stora Enso had initiated a sales process for the mill and related forestry operations.

The Beihai mill started operations in 2016. It has a pulp mill and a consumer board line (BM1) serving the Chinese market. The annual production capacity is 250,000 tonnes of Chemi-ThermoMechanical Pulp (CTMP) and 550,000 tonnes of consumer board. Stora Enso also operates 70,000 hectares of land in the Guangxi region for eucalyptus plantations — established in 2003 — for fiber supply.

"Following a thorough review and negotiations with potential buyers, we have decided to terminate the divestment process and focus on the ongoing business," stated Stora Enso's President and CEO Hans Sohlström. "We are confident that Stora Enso is the best positioned to continue operating this site going forward.

"Given the recent global cost escalation of wood and logistics, the relative cost competitiveness of the Beihai site has improved. Through the Beihai site, we will continue to serve our global and most demanding customers with premium packaging board in the Asia Pacific region," Sohlström added.

Stora Enso owns approximately 80% of the Beihai production site and forest operations — its local partners and International Finance Corporation (IFC) remain owners of the balance.

Stora Enso's other liquid packaging board production sites include Imatra, Finland and Skoghall, Sweden.

Stora Enso is a leading provider of renewable products in packaging, biomaterials and wooden construction, and one of the largest private forest owners in the world.

Source: Stora Enso