The new entity will manage almost 1.3 million hectares of Swedish forest, becoming Europe's largest listed forestry company.
The forest industry group Stora Enso is making substantial investments in the production of bioproducts, pulp, paper and next-generation, higher value-added wood products.
Stora Enso will separate its Swedish forestry assets into a new, listed company. The separation is expected to be completed in the first half of 2027. According to the information available, the new company will manage more than 1.2 million hectares of forest land in Sweden. The value of the company's biological assets stood at 5.7 billion dollars on 30 September 2025, making it Europe's largest listed company engaged solely in forestry.
“The separation of the Swedish forest assets was assessed as the best alternative for sharpening each company's focus on its key strengths and market opportunities, while maximising operational performance and shareholder returns,” said the Stora Enso press release. The move continues the strategic transformation that Stora Enso began in June 2025, when the group sold 175,000 hectares of forest for 900 million US dollars earlier this year.
The main shareholders Solidium Oy and FAM AB, which together hold 21% of the shares and 55% of the voting rights, have backed the plan. Stora Enso will continue to focus on renewable materials and packaging, while the new company will deal with forestry, renewable energy and carbon sequestration.
Tuomas Hallenberg (Tuomas Hallenberg), until now the head of Stora Enso's forestry business division, has been appointed President and CEO of the new Swedish forestry company. “The board's decision to proceed with the separation of the business lines is a significant step towards creating the largest listed forestry company in Europe,” said Kari Jordan (Kari Jordan), Chair of the Stora Enso board. He stressed: “The separation and listing of the Stora Enso Swedish forestry assets will unlock value potential and allow a clear focus on both the forestry assets and the industrial operations, driving faster growth in each sector. In line with the Stora Enso commitment to improving shareholder returns, the company will continue preparing for the listing of the new business.”
Stora Enso President and CEO Hans Sohlström (Hans Sohlström ) notes: “We are pleased that the next chapter in our company's important history is now beginning. The separation of the two sectors will create a solid basis for the independent growth of both companies. What is more, the two companies will retain a strategic relationship in which Stora Enso will gain access to a long-term wood supply agreement with the new company, securing revenue for both sides.”
The two companies will be linked by an 18-year wood supply agreement covering roughly 9% of Stora Enso's wood and fibre volumes in the Nordic countries. The new company will be headquartered in Falun, Sweden, and will be listed on the Nasdaq Stockholm and Nasdaq Helsinki exchanges. “The transaction is planned to be carried out through a statutory cross-border demerger of the assets. Completion is planned for the first half of 2027,” Stora Enso said. “The new company will become the largest listed forestry company in Europe.”