Stora Enso Oyj - Company Announcement

Stora Enso s subsidiary Papyrus to build new Scandinavian Central Warehouse in Sweden

Stora Enso Oyj Stock Exchange Release 27 June 2007 at 12.00 GMT

Stora Enso's subsidiary paper merchant Papyrus is to build a new
27 000 m2 Scandinavian Central Warehouse in the Port of Göteborg in
Sweden. Papyrus is purchasing 49 000 m2 of land from Scandinavian
Distripoint AB, a company owned by the City of Göteborg,  for the
building site at a cost of EUR 3.2 million. The total capital
expenditure in the project will be EUR 35 million. Construction work
is scheduled to start in the first quarter of 2008 and the warehouse
is expected to be fully operational at the beginning of 2010.

The greenfield site and the new Scandinavian warehouse will be
financed by the capital released through the sale of warehouses and
office properties in Sweden and Denmark on 19 June 2007. The
Scandinavian Central Warehouse is part of the Papyrus strategy to
increase efficiency and improve service. The new central warehouse
will give Scandinavian customers access to a wider product range with
improved product availability."Göteborg is logistically the optimal location for Papyrus with its
well-developed infrastructure, immediate proximity to the big freight
flows and closeness to our Scandinavian customers. The new warehouse
will increase our flexibility and ensure we improve our already
attractive service to our customers," says Mats Nordlander, President
of Papyrus.


For further information, please contact:
Mats Nordlander, President of Papyrus, tel. +46 703 370890
Kari Vainio, Executive Vice President, Corporate Communications, tel.
+44 7799 348 197
Keith B Russell, Senior Vice President, Investor Relations, tel. +44
7775 788 659
Ulla Paajanen-Sainio, Vice President, Investor Relations and
Financial Communications,
tel. +358 2046 21242

www.storaenso.com
www.storaenso.com/investors


Papyrus is a wholly-owned paper merchanting subsidiary of Stora Enso
with net sales of EUR 1907 million in 2006. Papyrus holds a leading
market position in continental Europe and is Europe's second-largest
paper merchant. It supplies 1.8 million tonnes of paper annually.
Papyrus currently has a presence in 20 European countries and employs
3150 people.
Papyrus is represented locally both under its own brand name and as
Schneidersöhne, Papeteries de France, Sihl+Eika, Scaldia,
Classen-Papier and Giger Papier. Although Papyrus operates under
different names, it has a coherent one-company commitment to offering
quality products, high service levels and superior logistical
solutions.

STORA ENSO OYJ



p.p.      Jussi Siitonen                Yrjö Rouhunkoski