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Stora Enso and Arauco Conclude Acquisition of Grupo ENCE's Uruguay Operations
Helsinki, Finland, 16 October 2009 -- Stora Enso and Arauco have completed the acquisition of the majority of Grupo ENCE's operations in Uruguay, announced on 18 May 2009. The joint acquisition on a 50/50 basis includes approximately 130,000 hectares of owned land and plantations, 6000 hectares of leased lands, and other operations owned by Grupo  ENCE in the central and western areas of Uruguay. As previously announced, the  enterprise value of the transaction, which was completed ahead of the original  target of the end of 2009, was USD 344 (EUR 253) million, including USD 33  million of assumed debt. Stora Enso's share of the enterprise value is 50%.

“I'm very proud that our team in seamless cooperation with Arauco has been able  to finalize this project ahead of the original schedule. That is a promising start and will give us a solid platform to go forward with our joint venture and plans in Uruguay,” said Stora Enso CEO Jouko Karvinen. “Cost-competitive plantation-based pulp is an essential part of Stora Enso's strategy and in one step, this transaction has secured the strategic raw material supply for a world  class pulp mill in Uruguay that we are planning jointly with Arauco.”

Stora Enso and Arauco have established a 50/50 joint venture to combine their  existing assets in Uruguay. The parties will integrate the assets acquired from  Grupo ENCE into this joint venture, creating a total land base of approximately  250,000 hectares, nearly half of which is planted with hardwood and softwood.

Stora Enso and Arauco have not taken any investment decision concerning the  construction of a pulp mill in Uruguay.

Stora Enso is the world leader in forest industry sustainability. The company's products provide a climate-friendly alternative to many nonrenewable materials, and have a smaller carbon footprint. Stora Enso is included in the Global 100 list of the world's  most sustainable companies. Stora Enso is also listed in the Dow Jones  Sustainability Index, the FTSE4Good Index, and the Climate Disclosure Leadership  Index. Stora Enso employs 29,000 people worldwide; sales in 2008  amounted to EUR 11.0 billion. 

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