Stora Enso has signed a letter of intent to divest the paper production site Kvarnsveden in Sweden, to the battery manufacturer Northvolt.
Due to structural decline in demand for graphical paper, Stora Enso closed its Kvarnsveden paper production site in September 2021. Kvarnsveden was founded in 1900 and has produced pulp and paper for over 120 years until production ended in 2021.
Northvolt will develop the site into a battery manufacturing plant. According to Northvolt, the Gigafactory is expected to be up and running by the end of 2024, creating up to 1,000 new jobs in Borlänge, Sweden.
Mannheimer Swartling is the legal advisor to Stora Enso in the transaction.