Finnish-Swedish group evaluates €5.8bn forestland demerger to streamline operations and unlock value.
Stora Enso has launched a strategic review of its Swedish forest holdings, assessing options that include a partial demerger and public listing of the business. The move, announced on June 19, is part of the company’s broader push to sharpen its focus on renewable packaging solutions and improve long-term value creation.
The potential separation would result in the formation of two independent, publicly traded entities: a dedicated forest company, fully owned by existing Stora Enso shareholders, and a streamlined industrial business focused on renewable packaging. According to the group, such a restructuring would enhance strategic agility and capital efficiency for both operations.
Stora Enso retains ownership of more than 1.2 million hectares of Swedish forestland—of which 1.0 million hectares are considered productive—with a fair value of approximately €5.8 billion (USD 6.2 billion) as of 31 March 2025. This follows the group’s agreement to divest around 175,000 hectares for an enterprise value of €900 million (USD 970 million), consistent with book valuation.
In a statement, President and CEO Hans Sohlström said:
“Our Swedish forest assets exemplify excellence in sustainable forestry operations and environmental stewardship. Initiating this strategic review underscores our commitment to maximising shareholder value while ensuring alignment with our long-term strategic objectives.”
The review will explore various alternatives for the future of the forest assets, including a full or partial demerger into a separately listed company. The new entity would emerge as Europe’s largest pure-play listed forest business, managing long-cycle assets with high appreciation potential and possible new revenue streams tied to bio-based materials, carbon capture, and biodiversity-linked credits.
The industrial arm of Stora Enso would remain focused on core packaging operations, where it holds leading market positions. The company aims to operate with increased flexibility and competitiveness across its integrated value chain, from materials to production and delivery.
Sohlström added that the objective is to “enhance business focus, reduce complexity, and unlock the full potential of both our forest and industrial assets.”
A webcast discussing the strategic review will be held on Thursday, 19 June 2025, at 11:00 EEST / 10:00 CEST. The session will be conducted in English and is accessible at https://stora-enso-call-june-2025.open-exchange.net. Additional information can be found on the company’s investor relations site.
Stora Enso is among the world’s largest private forest owners and a leading provider of renewable solutions in packaging, biomaterials, and wood-based construction. In 2024, the company employed around 19,000 people and reported €9 billion (USD 9.7 billion) in group sales. Stora Enso shares are traded on Nasdaq Helsinki, Nasdaq Stockholm, and the US OTC Markets.
All outcomes of the strategic review are subject to co-determination negotiations and legal processes across the affected jurisdictions. A final update is expected by the end of 2025.
