Stora Enso fined EUR 30 million for cartel

December 3, 2009 by timbercommunity

Finish global paper, packaging and forest products company Stora Enso has been ordered to pay a EUR 30 million penalty for collaboration
and exchange of information with other forest products companies concerning prices for purchasing roundwood in Finland from 1997 to 2004. The verdict was expected and the stock changed +0.16 during the day.

In its ruling issued today, the Finnish Market Court found that Stora Enso, UPM-Kymmene and Metsäliitto Cooperative had infringed the Act on Competition Restrictions by exchanging detailed information. Although the companies had not been proved to have agreed prices for purchasing roundwood, the Market Court regarded the collaboration as intended to stabilise roundwood prices. In the opinion of the
Market Court, no specification of the economic benefit of the infringement of competition restrictions had been presented. Initially, the Competition Authority had proposed in 2006 that a EUR 30 million penalty payment be imposed on Stora Enso.
Stora Enso will examine the ruling and then decide whether to appeal to the Supreme Administrative Court.

No provision has been made in Stora Enso's accounts for this matter. Stora Enso will record a EUR 30 million negative non-recurring item related to it in its fourth quarter 2009 results.

Sources:
STORA ENSO OYJ STOCK EXCHANGE RELEASE 3 December 2009 at 13.21 GMT