#Finland #Oulu #Stora Enso #Consumer Board

Stora Enso's Consumer Board Production Starts in Oulu

Stora Enso, a global leader in renewable products from the forest, has officially launched its new consumer packaging board line at its facility in Oulu, Finland. This marks a significant step in the company’s commitment to sustainability and growth in the packaging sector.

Project Overview

Initially announced in 2022, the project involved converting a previously idle paper machine into a highly adaptable production line focused on folding box board (FBB) and coated unbleached kraft (CUK). With the capacity to produce 750,000 tonnes annually, this new line is designed to cater to the growing demands of the food and beverage industries, particularly frozen, chilled, and dry food packaging.

The facility's production ramp-up is underway, with the first deliveries scheduled for the second quarter of 2025. Stora Enso has ensured that the development adheres to its original timeline and budget of approximately EUR 1 billion. By the end of 2025, the new line aims to reach EBITDA breakeven, with full capacity anticipated by 2027, which is expected to generate annual sales around EUR 800 million.

Strategic Significance

This investment signifies Stora Enso's focus on renewable packaging materials, its largest growth segment. This new facility will not only enhance their existing product offerings but also reinforce their competitive edge in the market. Hans Sohlström, President and CEO, emphasized that "the new line will be the most modern and cost-efficient in Europe," making Oulu Stora Enso's largest production facility, making it an integrated mega-site dedicated to future packaging board grades.

Employment and Resource Input

With the launch of this facility, approximately 650 employees will be engaged in the production activities in Oulu. The project will see an increase in wood consumption at the site, rising to approximately 3.5 million cubic meters annually. This will be sourced locally, alongside pulp from Stora Enso’s Enocell site in Finland and Veracel site in Brazil. Additionally, the prospective acquisition of the Junnikkala sawmills will further cement the availability of essential raw materials such as wood chips and biomass.

Conclusion

Stora Enso's Oulu site not only represents a vital investment in renewable packaging but also plays a crucial role in the company's broader strategy to optimize production and unlock profitable growth across its operations. With a projected increase in demand for sustainable packaging solutions, Stora Enso stands poised to capitalize on these opportunities well into the future. This initiative reinforces the company's vision that everything currently made from fossil fuels can potentially be produced from trees, showcasing their pervading commitment to sustainability and environmental stewardship.

As Stora Enso looks ahead, they continue to play a pivotal role in shaping the future of sustainable packaging solutions globally. With a workforce of around 19,000 and annual sales reaching EUR 9 billion in 2024, the company is firmly established as a leader among private forest owners worldwide, actively setting the stage for a renewable future.