HELSINKI, Finland, April 28, 2015 (GLOBE NEWSWIRE) -- In 2014, Celulosa y Energia Punta Pereira S.A. ("CEPP"), a joint operations company in the Montes del Plata group formed by Stora Enso and Arauco, was notified of arbitration proceedings initiated against it by Andritz Pulp Technologies Punta Pereira S.A., a subsidiary of Andritz AG, claiming EUR 200 million.
The claims related to contracts for major equipment that Andritz delivered to the Montes del Plata Pulp Mill project. CEPP disputed the claims brought by Andritz and also actively pursued claims of its own amounting to USD 110 (EUR 91) million against Andritz for breach by Andritz of its obligations under the contracts. Stora Enso has reported the item as contingent liability. No provisions were made in Montes del Plata's or Stora Enso's accounts for these claims and counterclaims.
The parties have now signed a settlement agreement and will withdraw the case from arbitration. The settlement agreement results in a USD 44 million (EUR 40 million) cash payment to be made by Montes del Plata of which Stora Enso's share is 50%. The payment will be recorded as capital expenditure in the Biomaterials segment in the second quarter of 2015. This settlement does not have material impact on Stora Enso's earnings.
For further information, please contact:
Ulla Paajanen-Sainio, SVP, Stora Enso Investor Relations, tel. +358 40 7638767
Kirsi Seppalainen, Head of Communications, Stora Enso Biomaterials,
tel. +358 2046 21444
Stora Enso is a leading provider of renewable solutions in packaging, biomaterials, wood and paper on global markets. Our aim is to replace non-renewable materials by innovating and developing new products and services based on wood and other renewable materials. We employ some 27 000 people in more than 35 countries, and our sales in 2014 were EUR 10.2 billion. Stora Enso shares are listed on NASDAQ OMX Helsinki (STEAV, STERV) and Stockholm (STE A, STE R). In addition, the shares are traded in the USA as ADRs (SEOAY) on the International OTCQX over-the-counter market.
STORA ENSO OYJ
Source:Stora Enso Oyj