[03/07/08] MST Mobilizes Against Police Violence, in Solidarity with Via Campesina Activists

Stora Enso's Brazilian Imbroglio by Maurna Desmond, Forbes.com Paper maker Stora Enso is catching heat from activists in Brazil who recently invaded its factory and blocked major roads. The Finnish-Swedish company wants to plant roots in South America, but the locals haven't been very welcoming. On Wednesday, Brazilian land rights group Landless Rural Workers Movement (MST) blocked eight roads in the Rio Grande do Sul state in Brazil to protest alleged police violence against peaceful and predominantly female activists a day earlier. MST says 900 protesters had invaded the 5200-acre Stora Enso tree farm. Police authorities report a head count of 600. The firm's stock has remained at $12.40 all day Thursday.

MST says that 50 activists affiliated with worker's rights group, Via Campesina, were badly injured by the police, who they say had been summoned by Stora Enso (nyse: SEO - news - people ). MST is as outraged by the paper company's plans as they are by the purported abuse: “To plant in this green desert near the border is a crime against our country and against the pampa ecosystem,” the group said. MST says that Stora Enso is currently in violation of a twenty-nine year old law that forbids foreign companies from owning land within 150 kilometers (95 miles) of Brazil's border. Kari Vainio, Executive Vic President of Stora Enso told Forbes.com Thursday that Stora Enso is not doing anything against the law and has legally purchased land. "We have legally purchased the land according to local law, " Vainio said. He added that the tree farm will be beneficial to the people working there and at the factory and that the new jobs will bring money into communities that need it. "We have made very careful assessment of existing social, economic and environmental factors" prior to buying the land, he added. On Stora Enso's Web-site, the company acknowledges buying land in Uruguay near the border of Brazil. The company stated it is in the "approval process" of getting special permission as a foreign company to buy the land. In the mean time, it went ahead and created a Brazilian proxy company called Azenglever Agropecuária "to hold the land until proper authorization is given." The company added that "all the relevant authorities were informed about this temporary arrangement" and that the relationship between the two companies is publicly registered. The relevant authorities include Yeda Crusius, the governor of Brazil's state of Rio Grande do Sul. According to the Brazil highest court, the Tribunal Superior Electoral, in October 2006, Stora Enso contributed 24,000 Brazil reals ($11,226 at the time of transfer) to Crusius's election campaign. The Scandinavian firm has already bought Brazilian land in the state of Bahia. Stora Enso has a joint venture, Veracel, there with Brazilian company Aracruz Celulose. In 2006 Stora Enso became the largest single producer of coated mechanical paper in Latin America when it bought Vinson Industria de Papel Arapoti and Vinson Empreendimentos Agricolas from International Paper. Stora Enso's then-Chief Executive Jukka Harmala said that "the strategic aim of this acquisition is to strengthen our presence in the Latin American market through paper production in Brazil." The company has made it very clear that it wants to"establish" a presence in the region and "expand it into new markets." Stora Enso quit its U.S. operation in November, selling out to Ohio-based NewPage. (See "Stora Enso Finds American Exit") Stora Enso is one of the oldest companies in the world. Its history traces back to at least 1288 when Stora Kopparberg’s mines, located in Falun, Sweden were first documented. ~~~~~~ Article Originally Available @:http://www.forbes.com/markets/emergingmarkets/2008/03/05/stora-enzo-prot...