Stora Enso, Foshan Huaxin Packaging sign joint-venture agreement
Stora Enso to have an 80% majority shareholding in the joint venture.
31/10/05 Stora Enso and Chinese board producer Foshan Huaxin Packaging Co., Ltd. have signed an agreement regarding the establishment of a joint venture in liquid packaging boards. The agreement is subject to final approval by Stora Enso's Board of Directors. The joint-venture plan will be filed for approval by the Chinese authorities. Stora Enso will have an 80% majority shareholding in the joint venture.
A letter of intent to start a joint venture with Foshan Huaxin Packaging Co., Ltd. was signed in August 2005. The final decisions on the project are expected to be taken by the end of 2005 after all authority approvals have been obtained. The new joint-venture company will be called Stora Enso Huaxin (Zhuhai) Packaging Boards Co., Ltd.
Foshan Huaxin Packaging Co., Ltd. has begun building a white lined chipboard machine with an annual production capacity of 250 000 tonnes. Through the joint venture company, Stora Enso plans to change the scope of the investment by modifying the machine to manufacture primary-fibre-based products such as liquid packaging boards, cupstock, cigarette boards and other cartonboards, thereby becoming the first producer of liquid packaging board for aseptic end uses in China.
Stora Enso is an integrated paper, packaging and forest products company producing publication and fine papers, packaging boards and wood products, areas in which the Group is a global market leader. Stora Enso sales totalled EUR 12.4 billion in 2004. The Group has some 45 000 employees in more than 40 countries in five continents and an annual production capacity of 16.4 million tonnes of paper and board and 7.7 million cubic metres of sawn wood products, including 3.2 million cubic metres of value-added products. Stora Enso's shares are listed in Helsinki, Stockholm and New York.
