Finnish pulp and paper manufacturer Stora Enso is set to begin a strategic review of its Swedish forest assets for the assessment of a potential separation and public listing of the assets through a partial demerger into a new company.
The move could result in two independent entities, each with its own strategic priorities.
Stora Enso would maintain its position in renewable packaging, while the Swedish forest business could become Europe’s “largest listed” pure forest company, owning assets with high long-term value and revenue potential.
The new entity will be fully owned by all the company’s shareholders.
The initiative is designed to improve business focus, streamline operations, and maximise the value of both the forest assets and the core packaging business of the company.
FAM, one of the largest owners of Stora Enso, showed support towards the strategic review.
FAM CEO Håkan Buskhe said: “A potential separation and public listing of the Swedish forest assets would create two leading companies, one of the world’s leading global renewable packaging companies and Europe’s largest listed pure forest company. If the Swedish forest assets would be publicly listed, both Stora Enso and the forest company would be strategic holdings for FAM.”
Following the sale of approximately 175,000 hectares (ha) of forestland for €900m ($1bn), Stora Enso still owns more than 1.2 million hectares in Sweden, valued at about €5.8bn as of 31 March 2025.
These assets, while crucial to the company’s wood supply, have their own operational and financial characteristics.
Stora Enso said, the company will provide an update on the strategic review by the end of 2025.
Stora Enso CEO and president Hans Sohlström said: “Initiating this strategic review underscores our commitment to maximising shareholder value while ensuring alignment with our long-term strategic objectives. By evaluating various strategic options, we aim to enhance business focus, reduce complexity, and unlock the full potential of both our forest and industrial assets.”
In May 2025, Stora Enso acquired Junnikkala Oy, a Finnish sawmill company, following an agreement first announced in October 2024.
