Stora Enso is changing its reporting regarding the costs related to the growth of biological assets (i.e. growing trees) starting from the fourth quarter of 2016. Costs related to the development of biological assets are capitalised on the balance sheet during the growth cycle (i.e. until the time of harvesting). At harvesting, the capitalised costs are transferred from biological assets to inventory. Prior to the change, Stora Enso has included the costs related to the growth of biological assets in its operational EBITDA. Starting from the fourth quarter of 2016, these growth costs will be excluded from operational EBITDA and presented as Operational decrease in the value of biological assets. The reason for the change is to align the reporting of the growth costs with industry benchmarks. click Read More below for additional detail
Stora Enso has increased its ownership up to 100% in the Sweden-based company Cellutech AB. The company specialises in the development of new materials and applications based on cellulose, micro-fibrillated cellulose (MFC) and other wood-based components.
The acquisition of Cellutech supports Stora Enso’s vision of replacing fossil-based materials with renewable ones originating from wood. The acquired company works, among others, in the areas of foams for packaging and hydroponics where the markets are continuously growing. Cellulosic foams can, for example, be used in packaging to replace polystyrenes which are the most widely used plastics.
“The acquisition of Cellutech will add a new dimension to our fibre and cellulose capabilities particularly in lightweight cellulose foams and spheres. We are investing in technologies and expertise that will further broaden application development competence in Stora Enso’s Biomaterials Division,” says Markus Mannström, EVP, Stora Enso Biomaterials.
Established in 2013, Cellutech is an agile team of eight scientists and researchers serving as a link between academia and industry. Cellutech was formed to take world class scientific research developed at SweTree Technologies and Wallenberg Wood Science Center and develop the ideas into commercially successful technologies and products.
The transaction will not have a material financial impact on the Group.