Washington D.C., February 28, 2014
—IFC, a member of the World Bank Group, will support the continued development of sustainable forestry in Guangxi, China through new equity and debt financing for Store Enso’s integrated plantation, pulp and packaging board mill project. IFC will invest about RMB356 million of equity and is finalizing arrangements to provide loans of US$460 million, including an IFC loan of $88 million and syndicated loans of $372 million arranged through commercial banks.
“We welcome the continued support from IFC. This shows the quality of the work we are doing in Guangxi”, says Mats Nordlander, Executive Vice President Stora Enso Renewable Packaging.
“Sustainable forestry management helps developing countries like China maintain the economic and environmental benefits of forests during an era of growing demand for packaging and wood products,” said IFC Head of Global Agribusiness and Forestry German Vegarra. "The potential for development and job creation is especially important for Guangxi, one of the frontier regions of China that are a strategic focus for the World Bank Group."
In Guangxi, economic output per person is about 40 percent lower than the national average. Once fully operational, the project is expected to support over 8,700 jobs for employees and contractors, and thousands more jobs in businesses supplying goods and services. In addition, it will provide rental income to about 100,000 farmers and villagers.
Demand for packaging products is booming in China. Yet the packaging industry is fragmented and operates with inefficient technology, increasing pressure on China’s scarce forest resources. Stora Enso’s existing 90,000 hectares of plantations in Guangxi have been certified sustainably managed by the China Forest Certification Council (CFCC – national), and by the Forest Stewardship Council (FSC). The integrated plantation, pulp and board mill will operate under best available technology, and promote a higher standard of efficiency in the Chinese market.
Over the past decade, IFC has invested more than $1.5 billion across the forest product supply chain. IFC invests in areas like paper and board production, mechanical wood production, processing in pulp mills, and primary production of wood. During the same period, IFC Advisory Services supported investments with $30 million in spending, mainly on land and social and environmental-related issues with upstream activities like timber plantations.
About Stora Enso
Stora Enso is the global rethinker of the paper, biomaterials, wood products and packaging industry. We always rethink the old and expand to the new to offer our customers innovative solutions based on renewable materials. Stora Enso employs some 28 000 people worldwide, and our sales in 2013 amounted to EUR 10.5 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) in the International OTCQX over-the-counter market.
About IFC
IFC, a member of the World Bank Group, is the largest global development institution focused exclusively on the private sector. Working with private enterprises in more than 100 countries, we use our capital, expertise, and influence to help eliminate extreme poverty and promote shared prosperity. In FY13, our investments climbed to an all-time high of nearly $25 billion, leveraging the power of the private sector to create jobs and tackle the world’s most pressing development challenges. For more information, visit
www.ifc.org
Stay Connected
