#Finland #Helsinki #Stora Enso #Renewable Packaging #Business Restructuring

Stora Enso's New Organization Aims for Sustainability

Stora Enso, a leading provider in renewable materials, has announced plans to implement a new organizational structure intended to sharpen its focus on renewable packaging. This change aligns with the company's commitment to sustainability while enhancing operational efficiency. The new structure, effective from July 1, 2025, will create seven profit and loss (P&L) responsible business areas, with four of them dedicated to renewable packaging. Together, these areas are anticipated to represent around 60% of the company’s expected revenue for 2024.

The decision to reconfigure the organization stems from Stora Enso’s recognition of the growing importance of sustainable practices in today’s business landscape. The streamlined structure is designed to reduce complexity within the company, improve customer engagement, and foster a culture focused on performance. The renewable packaging areas will include Food Service and Liquid Board, Cartonboard, Containerboard, and Packaging Solutions, all contributing to Stora Enso's commitment to addressing environmental concerns through innovative packaging materials and solutions.

A Focus on Customer Needs

Each business area is tailored to cater to specific customer segments, from food and beverage industries to e-commerce and cosmetics. Products include cartons, boxes, trays, cups, and bags, all crafted from renewable fiber. This adaptability not only supports running operations collaboratively but also enhances the companies’ standing in meeting customer demand effectively. Stora Enso aims to enable its clients to minimize their environmental footprint, thus aligning business operations with global sustainability trends.

In the remaining 40% of the organizational structure, three other business areas will remain focused on Biomaterials, Wood Products, and Forest management. These segments will continue to play a supportive role concerning raw material supply, crucial for the renewable packaging initiatives. The integration within these areas aims to fortify synergies across the group by strategically placing sawmills and building solutions sites operationally closer to their corresponding board or pulp production sites.

Leadership Changes

The restructuring also prompts new leadership within Stora Enso. Notable appointments include Markku Luoto, who will lead the Food Service and Liquid Board; Andreas Birmoser at the helm of Cartonboard; and Hannu Kasurinen overseeing Containerboard. These leaders are expected to reinforce Stora Enso’s push for innovation and efficiency. Underlining this transformation, President and CEO Hans Sohlström emphasized that the redesign is intrinsically focused on increasing accountability and responsiveness to customers and operational needs.

Commitment to Innovation

This transformation is part of Stora Enso's broader initiative to position themselves as leaders in a rapidly evolving market, where sustainability and innovation are paramount. Furthermore, it resonates with the company’s belief that materials traditionally made from fossil fuels can be substituted with renewable resources. Stora Enso sees its forest assets as vital in achieving this goal, serving as a sustainable source of materials for its packaging and construction solutions.

Stora Enso has been a core player in sustainable forestry and renewable products, standing as one of the largest private forest owners globally. By maintaining a clear focus on enhancing customer experience through this restructuring, Stora Enso aims to foster a corporate culture that aligns with its sustainability mission, thereby driving future growth and improved performance.

This significant change and its operational impacts are anticipated to hold further discussions and negotiations as Stora Enso balances its new directives with workforce regulations across all impacted regions. With continuing robust leadership and innovative business strategies, Stora Enso is poised to reinforce its market position while advocating for a sustainable future.