Stora Enso to carry out feasibility study for Russian pulp and paper mill

A feasibility study for an integrated pulp and paper mill in the Russian region of Nizhny Novgorod is to be trialled by paper giant Stora Enso.

The study will evaluate the profitability of manufacturing paper for Russian consumers from Russian wood.

The move comes off the back of findings from a recently completed pre-feasibility study, which began in July 2007, that supported the viability of paper manufacturing at the Russian site.

It is expected the study will be completed by April 2009. If the results are favourable, preconditions are met and permits made, the company's board of directors will consider the final decision on implementation.

Earlier this month, Stora Enso finalised the divestment of its merchant business Papyrus to Altor for €640m (£498m).

The unit was divested as part of Stora Enso's strategy of focusing the business portfolio of the group.