Chief executive Jukka Hrml (pictured) said the restructuring and sale of part of its forestland was consistent with the companys long-term strategy of freeing capital to invest in its core business.

Stora Enso plans to transfer its 600,000 hectares of forestland holdings and related business in Finland into a new company called Tornator in July.

In the US, Stora Enso will offer for sale 130,000 hectares of forestland with a book value of 63m.

The value attained from the restructuring and sale of shares to investors will, according to Hrml, "not only make the balance sheet very strong, but allow us to view any potential moves in the consolidation area".

Stora Enso will retain a minority shareholding in the Finnish Tornator, with the remaining shares being sold to investors by the end of this year.

The book value of the assets set to be transferred to Tornator is 252m.

Tornator will own and manage the forestland, sell cutting rights and offer forest management services.

The new company will also enter into a deal with Stora Enso to supply 1.5m cubic metres of timber a year.

Some 50 salaried staff and about 180 forest workers will be transferred or recruited from Stora Enso to Tornator.

In North America, Stora Enso plans to divest its forestland in Michigan, Wisconsin and Minnesota directly to investors by the end of the year.

In negotiations over the sale, Stora Enso North America will seek a fibre supply agreement from potential buyers.

Story by Andy Scott