Stora Enso has decided to start using a valuation method for its forest assets in the Nordics based on market transaction data and change the accounting policy from the fourth quarter of 2020 onwards. Preliminary estimations, based on transactions in those areas in which Stora Enso has forest land, indicate that the value of the Group’s forest assets, including leased land, will be between EUR 6.5 billion and EUR 7.0 billion, compared with the end of Q3/2020 book value of EUR 5.4 billion. The review of the fair value will be completed during the fourth quarter and will take into account also the latest transaction prices. Deferred tax liability will be recognised based on the difference between the forest assets’ book value and their value for tax purposes in the same manner as currently.
Georgia-Pacific has announced that the formerly known Augusta Select Tissue mill in Augusta, Canada, would be closing, reports WRBC.
The company pinned the mill’s closure on increased competition in the industry and improved performance of other facilities. Some of the equipment will be moved to other units, while other will be sold for scrap. The property will also eventually be sold, according to the company.
“We know this is a difficult time for the employees at the Augusta mill and their families,” said Rob Shaw, vice president of manufacturing who has oversight for the Augusta tissue facility. “This decision is not a reflection on their efforts to operate safely and productively. Our commitment is to work with employees to find ways to minimize the difficulty as best we can. That includes working with state and local employment agencies that can also support these employees.”