Stora Enso has announced that it will halt its plan to sell its Beihai packaging board production site and forestry operations in China. Initially proposed in December 2022, the divestment was part of the company's strategy to refocus on fiber-based packaging. However, after reviewing potential sale opportunities, Stora Enso concluded that retaining and further developing the Beihai site would be more beneficial. The company now plans to enhance the site’s operational efficiency, reduce costs, and introduce innovations in product development, particularly in liquid packaging boards and other high-value products.

The Beihai facility, which holds approximately 80% of Stora Enso's stake along with local partners, has improved its cost competitiveness due to recent global cost increases in wood and logistics. Stora Enso intends to further develop the site to cater to its global and Asia-Pacific customers, particularly in supplying premium-quality liquid packaging boards. This shift aligns with Stora Enso's broader strategy to maintain its position as a global leader in sustainable packaging without requiring substantial capital investment in the near future.

The company also announced earlier in the year a €30 million ($32.5 million) investment to upgrade its Ostrołęka corrugated packaging facility in Poland. This investment, alongside the retention of the Beihai site, underscores Stora Enso's commitment to strengthening its packaging production capabilities and delivering high-performance, sustainable packaging solutions to a global market.

Stora Enso's decision to retain the Beihai site reflects its confidence in the site's long-term value. CEO Hans Sohlström emphasized that the site will continue to play a crucial role in serving Stora Enso’s global customers, especially in the competitive Asia-Pacific region. By focusing on operational enhancements and cost management, the company aims to boost the competitiveness of the Beihai site and solidify its position in the premium liquid packaging board market.