Helsinki, Finland, 27 June 2007 -- Stora Enso's subsidiary paper merchant Papyrus is to build a new 27,000 m2 Scandinavian Central Warehouse in the Port of Göteborg in Sweden.

Papyrus is purchasing 49,000 m2 of land from Scandinavian Distripoint AB, a company owned by the City of Göteborg, for the building site at a cost of EUR 3.2 million. The total capital expenditure in the project will be EUR 35 million. Construction work is scheduled to start in the first quarter of 2008 and the warehouse is expected to be fully operational at the beginning of 2010.

The greenfield site and the new Scandinavian warehouse will be financed by the capital released through the sale of warehouses and office properties in Sweden and Denmark on 19 June 2007. The Scandinavian Central Warehouse is part of the Papyrus strategy to increase efficiency and improve service. The new central warehouse will give Scandinavian customers access to a wider product range with improved product availability.

"Göteborg is logistically the optimal location for Papyrus with its well-developed infrastructure, immediate proximity to the big freight flows, and closeness to our Scandinavian customers. The new warehouse will increase our flexibility and ensure we improve our already attractive service to our customers," says Mats Nordlander, president of Papyrus.