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  Stora Enso agrees to sell Napi sawmill to Puidukoda
[Jan 8, 2024]

Stora Enso has agreed to sell the Napi sawmill in Estonia to local planed timber producer Puidukoda.

The news follows the closure of the site in Q4, 2023 after an original announcement to close the Näpi mill in June 2023. Stora Enso had said the sawmill closure had been due to reduced long-term raw material availability, increased wood costs and low profitability.

The Näpi sawmill has an annual capacity of 50,000m3 of sawn timber, 180,000m3 of further processed wood products and 25,000 tonnes of pellets and employed 100 staff.

New owner Puidukoda intends to re-start operations on site with the intention to employ local residents to run the business.

¡°The decision to close Näpi mill was one of several actions to improve Stora Enso Group¡¯s long-term competitiveness and profitability,¡± said Lars Völkel, EVP and head of the wood products division at Stora Enso.

¡°We are very pleased to have come to an agreement with Puidukoda, who will give the mill the attention it deserves and ensure a long-term development of the business.¡±

The transaction with Puidukoda includes all the land and buildings as well as the equipment related to wood processing, excluding the sawmill's machinery. The sawline and associated equipment will be sold to another buyer and the rest of the equipment from Näpi site has been shipped to other Stora Enso sawmills.

¡°Näpi Mill has been operating for more than 30 years, and we are pleased to witness the beginning of a new chapter for the site,¡± said Anne-Liis Kapstas, former Näpi mill director.

¡°The mill has played a significant role in the local community, now with the introduction of new employment opportunities, the area will have a positive outlook.¡±

SOURCE: storaenso.com