Stora Enso invests in expansion of board production at Skoghall and starts pre-feasibility study to convert the second line in Oulu

HELSINKI, Oct. 20, 2021 /PRNewswire/ -- Stora Enso is investing EUR 97 million to expand the board production at the Skoghall site in Sweden.  At the same time, Stora Enso is initiating a pre-feasibility study to convert the second, currently idle, line at its Oulu site in Finland, to a packaging board line.

Market demand for sustainable packaging is increasing. Stora Enso is a global leader in consumer packaging with strong market positions in attractive end-uses. The investment in Skoghall will further drive profitable growth in attractive end-use segments, such as liquid packaging board and coated unbleached kraftliner, and is expected to be completed in the second half of 2023. Following the investment, the annual packaging board production at Skoghall can be increased by approximately 100 000 tonnes, to a total capacity exceeding 900 000 tonnes, subject to environmental permits.

The investment decision follows the completion of the feasibility study announced in November 2020. Based on the study, Stora Enso has decided not to go ahead with the originally planned pulp capacity expansion. The original feasibility study had an estimated capital expenditure of approximately EUR 800–850 million for both pulp and board capacity expansion. The board expansion in Skoghall will be implemented through debottlenecking of one of the existing production lines, and executed in two steps, utilising the scheduled maintenance stops.

Growth in sustainable packaging is a long-term strategic objective for Stora Enso. Following the successful conversion in Oulu from paper to kraftliner production for food applications, Stora Enso has decided to initiate a pre-feasibility study to convert the second, idle paper line into a packaging board line. The first conversion ramp-up in Oulu has proceeded ahead of plan since production started at the beginning of the year. A second conversion would further improve the Oulu site's flexibility and competitiveness, through integrated pulp availability, additional fixed and variable cost savings, and ability to utilise the adjacent deep-sea harbour. The pre-feasibility study will be completed early 2022.

"Skoghall is one of our key integrated production sites for eco-friendly packaging materials. The investment strengthens Stora Enso's capability to produce high-quality and cost-competitive consumer board grades within the growing core segments of liquid and food packaging. In Oulu, the ramp-up of the first converted production line has been successfully executed, reaching towards full capacity, quality requirements as well as profitability ahead of plan. Through both these growth initiatives we are demonstrating speedy time-to-market and ability to respond to the increasing demand for more sustainable packaging," says Hannu Kasurinen, EVP Stora Enso's Packaging Materials division. 

Stora Enso's Skoghall site in western Sweden is a modern, world-class producer of consumer packaging board, for liquid packaging and dry food packaging. Total annual production currently exceeds 800 000 tonnes of board. 

Stora Enso's Oulu site is a premium kraftliner producer in northern Finland. In early 2021, one of two former paper machines, was converted to kraftliner for consumer packaging applications. The pulp mill and drying machine were modified to produce unbleached brown pulp. The second former paper production line has been kept idle in the meantime. When fully ramped up, the annual capacity of the first line is 450 000 tonnes of kraftliner and 550 000 tonnes of pulp.

Earlier releases:

11 November 2020: Stora Enso to start feasibility study for expanding pulp and board capacity at Skoghall Mill

29 January 2021: Production started at Stora Enso's Oulu Mill

For further information, please contact:

Satu Harkonen
Press Officer, Stora Enso
+358 40 832 7458

Investor enquiries:
Ulla PaajanenSVP
Investor Relations
tel. +358 40 763 8767 

Part of the bioeconomy, Stora Enso is a leading global provider of renewable solutions in packaging, biomaterials, wooden constructions and paper. We believe that everything that is made from fossil-based materials today can be made from a tree tomorrow. Stora Enso has some 23 000 employees, and sales in over 50 countries. Our sales in 2020 were EUR 8.6 billion. Stora Enso shares are listed on Nasdaq Helsinki (STEAV, STERV) and Nasdaq Stockholm (STE A, STE R). In addition, the shares are traded in the USA as ADRs (SEOAY). storaenso.com

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