Stora China

completed

Stora Enso Oyj (Stora Enso or the sponsor), the world’s largest paper and board producer by output volume and number three sawn timber producer, has approached IFC for a loan facility to support its plantation and manufacturing investments in China. Stora Enso’s current activities in China include development of eucalyptus plantations in the Guangxi Autonomous Region of Southern China, and a paper mill in Suzhou, Jiangsu Province. Stora Enso plans to further develop both operations, with an immediate financing need to help development of their plantations. These investment projects, combined with Stora Enso’s other possible investment projects in China comprise an estimated $125 million investment program over the next five years. Stora Enso has requested a flexible debt facility to help it with its investment program financing needs. Stora Enso may also develop a pulp and board mill in Southern Guangxi. This project will only proceed if Stora Enso is able to develop its Guangxi plantations to the extent that they can provide sufficient volumes of wood for pulping on a sustainable basis. Any possible pulp mill development will be subject to separate Environmental and Social Assessment, and is not covered further in this Environmental Review Summary.