HELSINKI (News release) -- Stora Enso has signed an agreement to divest its real estate of the Sunila site in Kotka, Finland, to AALTO Development Oy. AALTO Development is a Finnish, privately-owned property development company focusing on high-quality architecture and urban planning.

Stora Enso will remain in Sunila as a tenant to AALTO Development. The Lignode battery material pilot plant will continue its operations in Sunila. Also, the Sunila-based demonstration plant engineering study, announced earlier by CarbonScape, is unaffected by the transaction.

The parties have agreed not to disclose the transaction price. The closing of the transaction is expected during Q4 2024.

"We're pleased to have found AALTO Development as a committed new owner for Sunila, with a strong vision for developing the site further and a deep appreciation for the unique architectural heritage of Alvar Aalto's design. Furthermore, it is essential for us to have a reliable partner at Sunila as we continue our Lignode pilot plant operations," says Tuomas Hallenberg, Stora Enso's Finland Country Manager and Executive Vice President of Forest Division.

Pulp and lignin production at Stora Enso's Sunila Mill was discontinued in 2023. Since then, Stora Enso's priority for Sunila has been to find an owner that can bring new, profitable business operations and jobs to the site that has a well-working infrastructure and favorable location. AALTO Development aims to transform Sunila into a hub for sustainable energy transformation technology, including sizable investments into a hydrogen-based solution by Gen-H Oy.

About AALTO Development Oy and Gen-H Oy

Founded in 1992, AALTO Development Oy is a Finnish real estate developer focused on creating sustainable and innovative projects. Gen-H Oy is an emission-free, local energy systems developer, operating in Finland and Spain. Both companies are committed to advancing renewable energy solutions and fostering Sunila's development.

Stora Enso
Part of the global bioeconomy, Stora Enso is a leading provider of renewable products in packaging, biomaterials and wooden construction, and one of the largest private forest owners in the world. Stora Enso has approximately 20,000 employees and our sales in 2023 were EUR 9.4 billion. Stora Enso shares are listed on Nasdaq Helsinki Oy (STEAV, STERV) and Nasdaq Stockholm AB (STE A, STE R). In addition, the shares are traded in OTC Markets (OTCQX) in the USA as ADRs and ordinary shares (SEOAY, SEOFF, SEOJF). storaenso.com/investors