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Stora Enso Finalizes Acquisition of Vinson Indústria de Papel Arapoti Ltda. and Vinson Empreendimentos Agricolas Ltda. in Brazil
Helsinki, Finland, 01 September 2006 -- Stora Enso has finalized its previously announced (22 August 2006) acquisition of 100% of the shares in the Vinson Indústria de Papel Arapoti Ltda. and Vinson Empreendimentos Agricolas Ltda. from International Paper. The deal comprises a paper mill producing coated mechanical paper (205,000 metric tons annual capacity), a sawmill (150 000 cubic meters sawn timber annual capacity) and approximately 50,000 hectares of land out of which approximately 30,000 hectares are productive plantations. (These assets were formerly owned by Inpacel - Indústria de Papel Arapoti Ltda. and Inpacel Agroflorestal Ltda., subsidiaries of International Paper.)

The enterprise value is approximately USD 420 million (EUR 333 million) with about half of the value attributable to paper business, including tax credits of USD 10-15 million, and the balance to sawmill and plantations. This equates to an acquisition cost of approximately USD 1,100 (EUR 860) per metric ton paper capacity.

The acquired entities are at Arapoti, in the state of Paraná, near major markets. In 2005 the companies had net sales of USD 228 million (EUR 178 million), 76% from coated mechanical paper, 15% from plantations, and 9% from sawmilling. The acquired entities have 711 employees.

The paper mill will be incorporated into Stora Enso's Publication Paper division and is the main focus in the acquisition. The sawmill and plantations will be incorporated into Stora Enso Forest Products division. The future development options for the sawmill and plantations are being evaluated. Stora Enso Latin America will have a supporting role in administration and sales. The acquired entities will be consolidated from 01 September 2006 onwards.

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