Stora Enso will spin off its Swedish forest assets into a new publicly listed company, with the demerger expected to be finalised in the first half of 2027. Wood Central understands that the new entity will hold more than 1.2 million hectares of forest land in Sweden, valued at $5.7 billion as of September 30, 2025, making it Europe’s largest listed pure-play forest company.
“The separation of the Swedish forest assets was assessed to be the best alternative to enhance focus on respective businesses’ core strengths and market opportunities, maximising operational and shareholder value,” Stora Enso said in a media release. The move follows a strategic review launched by Stora Enso in June 2025 and comes after the group sold 175,000 hectares of forest in a US$900 million deal earlier this year.
Major 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 pursue value creation through forest management, renewable energy, and carbon sequestration.
Tuomas Hallenberg, currently Executive Vice President of Stora Enso’s Forest business area, has been appointed President and CEO of the new Swedish forest company. “The Board’s decision to move forward with the demerger marks a milestone in the creation of the largest listed pure play forest company in Europe,” said Kari Jordan, Chair of Stora Enso’s Board of Directors.
“The separation and public listing of Stora Enso’s Swedish forest assets business will unlock value potential and focus on both the forest assets and industrial operations, enabling accelerated growth across each business. Consistent with Stora Enso’s commitment to maximise shareholder value, it will now continue the preparations towards the public listing of the new company.”
Hans Sohlström, President and CEO of Stora Enso, added: “We are excited to now enter the next phase of this important chapter in our company’s history. The demerger will create a solid foundation for the independent growth of both companies. Moreover, the two companies would maintain a strategic relationship, where Stora Enso gains access to a long-term wood supply agreement with the new company, securing revenues for both parties.”
Wood Central understands that the two businesses will be linked by an 18‑year wood supply agreement, covering about 9% of Stora Enso’s Nordic wood and fibre needs. The new company will be headquartered in Falun, Sweden, and listed on Nasdaq Stockholm and Nasdaq Helsinki. “This transaction is planned to take place through a statutory partial cross‑border demerger, with completion targeted for the first half of 2027,” Stora Enso said. “The new entity is set to become the largest listed pure‑play forest company in Europe.”
