HELSINKI--Stora Enso Oyj (STERV.HE) Tuesday said it will pay 22
million dollars to cover its share of a settlement that will close
arbitration proceedings involving the Montes del Plata pulp mill
project in Uruguay.
The Finnish paper, pulp and cardboard maker said the settlement
payment will not have a material impact on its earnings. It will be
recorded as capital expenditure in Stora Enso's second-quarter
financial report.
The Montes del Plata mill, which started operations in 2014, is
a joint venture between Stora Enso and the Chilean company Celulosa
Arauco y Constitucion S.A. The joint venture was the target of
arbitration proceedings started by a subsidiary of the Austrian
plant engineering group Andritz AG (ANDR.VI) in 2014.
The parties to the arbitration have now signed an agreement that
will end the proceedings. As a part of the agreement, Montes del
Plata will make a $44-million cash payment to Andritz. Stora Enso's
share of the payment is 50%.
Write to Juhana Rossi at juhana.rossi@wsj.com; Twitter:
@WSJordics
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