Stora Enso Oyj - Company Announcement

Stora Enso to close its Suzhou paper mill and to divest the site in China

STORA ENSO OYJ STOCK EXCHANGE RELEASE 6 June 2016 at 9.00 EET

Stora Enso has signed an agreement to divest the key assets of its Suzhou Mill
in China, including the land-use rights and buildings, to the local government
of Suzhou National New & Hi-tech Industrial Development Area (SND). During its
20 years of operation, the city of Suzhou has grown around the mill, making it
difficult to develop and continue industrial operations at the current site. The
cash consideration for the divestment of assets is approximately EUR 240
million.

The total gain on disposal to be reported in operating profit amounts to
approximately EUR 180 million of which EUR 26 million will be recorded as a
positive non-recurring item in Stora Enso’s second quarter 2016 results and EUR
154 million is expected to be recorded as a positive non-recurring item in Stora
Enso’s fourth quarter 2016 results. The total net gain including the closure
related costs after tax will be approximately EUR 150 million.

Production is planned to be stopped during June 2016 and the transaction is
expected to be completed in the fourth quarter of 2016. Operational
profitability of the mill is close to break even so the transaction will not
have a material impact on Stora Enso’s operational EBIT going forward.

“Suzhou Mill is a recognised high quality paper producer with an established
customer base. However, the mill only has one paper machine and it will no
longer be competitive after the emergence of larger-sized mills in the Chinese
market. The location of the mill in the middle of a large city is not favourable
for paper production,” says Kati ter Horst, EVP Stora Enso’s Paper division.

Based on annual figures for 2015, the divestment is expected to reduce Stora
Enso’s annual sales by EUR 126 million and simultaneously decrease the annual
woodfree coated paper production capacity by approximately 240 000 tonnes.
Suzhou Mill currently employs approximately 500 people, who will receive support
in finding new employment opportunities.

About the buyer

SND is the administration of the Suzhou National New & Hi-tech Industrial
Development Area, established in 1992. SND is part of the Suzhou City
government. Suzhou City has approximately 11 million inhabitants and borders
west Shanghai. SND plans to convert the mill site from industrial use to non
-industrial use.

For further information, please contact:
Ulrika Lilja, EVP, Communications, tel. +46 1046 71668

Investor enquiries:
Ulla Paajanen-Sainio, SVP, Investor Relations, tel. +358 2046 21242

Stora Enso is a leading provider of renewable solutions in packaging,
biomaterials, wooden constructions and paper on global markets. Our aim is to
replace fossil based materials by innovating and developing new products and
services based on wood and other renewable materials. We employ some 26 000
people in more than 35 countries, and our sales in 2015 were EUR 10.0 billion.
Stora Enso shares are listed on Nasdaq Helsinki (STEAV, STERV) and Nasdaq
Stockholm (STE A, STE R). In addition, the shares are traded in the USA as ADRs
(SEOAY) on the International OTCQX over-the-counter market.
storaenso.com (http://www.storaenso.com/)

STORA ENSO OYJ
For further information, please contact:
Ulrika Lilja
EVP, Communications
tel. +46 1046 71668

Investor enquiries:
Ulla Paajanen-Sainio
SVP, Investor Relations
tel. +358 2046 21242