Stora Enso's SC Paper Machine Inaugurated in China

Helsinki, Finland, 28 January 2008 -- Stora Enso's Hannu Alalauri, EVP, Magazine Paper, and representatives of Huatai Paper and local government today inaugurated Stora Enso's 200,000 metric tons/year super-calendered (SC) paper machine at Dongying in Shandong Province, China. The machine started production on 25 November 2007.

"The SC paper, which is based mainly on recovered paper, fills a gap in the market since there is currently no other manufacturer of SC paper in China. The SC paper machine is operated by Stora Enso Huatai Paper Company, in which Stora Enso has a 60% shareholding and its Chinese partner Shandong Huatai Paper 40%," said Markku Pentikäinen, Stora Enso executive vice president, Asia Pacific and Russia.

The customers for the new SC paper are printing houses with heatset web offset printing facilities, retail chains, publishers, advertising companies, brand owners, and merchants, mainly in the more developed coastal markets, such as Beijing, the Yangtze River delta area (including Shanghai), Guangzhou, and Shenzhen. There is also good potential in several inland cities with high populations.

The financial results of the joint venture are consolidated in Stora Enso's accounts and reported in the Magazine Paper business area.

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