Stora Enso Begins Production at New Consumer Board Line in Oulu, Finland

Stora Enso's New Consumer Board Line Launches in Oulu, Finland

Stora Enso has officially commenced operations at its highly anticipated consumer packaging board line located in Oulu, Finland. This state-of-the-art facility has begun its production ramp-up phase, with the initial deliveries to customers expected in the second quarter of 2025. This initiative, part of Stora Enso's broader strategy to enhance its renewable packaging offerings, aims for an annual capacity of 750,000 tonnes, focusing on folding box board (FBB) and coated unbleached kraft (CUK).

In recent years, Stora Enso has strategically shifted from traditional paper production to renewable materials. This transition was highlighted by their 2022 decision to repurpose an idle paper machine at the Oulu facility, transforming it into a flexible manufacturing line dedicated specifically to packaging solutions. The project, initially estimated at €1 billion, is reportedly on schedule and within budget, with expectations to reach EBITDA breakeven by the end of 2025. By 2027, the line should operate at full capacity, generating projected annual sales of around €800 million.

This move marks a significant milestone for Stora Enso, reinforcing its commitment to renewable materials and packaging innovations. As the largest growth segment for Stora Enso, the new line is poised to significantly enhance their market presence, particularly in Europe and North America, where there is a rising demand for sustainable packaging solutions. The targeted applications include segments catering to frozen, chilled, and dry food, as well as multi-packaging for beverages.

Stora Enso’s President and CEO, Hans Sohlström, expressed optimism regarding the new line, stating that it would be the most modern and cost-efficient production line in Europe. With this investment, the Oulu site is set to become the largest production facility within Stora Enso’s portfolio, establishing itself as an integrated mega-site focusing on advanced packaging board grades while also facilitating a flexible production model. This advancement is expected to foster improved profitability and competitive advantages for both consumer board and containerboard markets.

The facility is set to employ approximately 650 personnel, further contributing to the local economy. The wood consumption at the Oulu site is expected to increase significantly, from around 2.5 million cubic meters to approximately 3.5 million cubic meters annually. This increase will utilize a combination of local wood supply and pulp sourced from Stora Enso's other operations, including the Enocell site in Finland and the Veracel site in Brazil. Additionally, the prospective acquisition of the Junnikkala sawmills would ensure a stable, cost-effective supply chain of raw materials necessary for production, such as wood chips and biomass.

As Stora Enso continues to innovate within the packaging industry, their commitment to sustainability remains strong. The company believes that alternatives to fossil-based materials can be drawn from renewable sources, aligning with their vision for a future built on green principles. By 2024, Stora Enso had about 19,000 employees and reported a total sales figure of €9 billion, showcasing its robust position in the market.

This recent development at the Oulu site not only emphasizes Stora Enso’s forward-thinking approach to production but also highlights the evolving landscape of the consumer packaging industry focused on sustainability. As they progress towards their goals, the company looks to bolster their offerings, ensuring they meet the growing demand while contributing positively to the environment and society at large.

Conclusion

Stora Enso’s new consumer board line in Oulu represents a significant leap toward a sustainable future in packaging. With its planned advancements and a solid operational framework, it demonstrates how traditional industries can evolve to meet modern challenges and consumer demands. Stora Enso is undoubtedly setting the pace in the green transformation of the packaging sector.