STORA ENSO TO INVEST €1BN IN BOARD

Papermaking giant Stora Enso is investing €1bn to convert a former paper machine at its Oulu site in Finland into a high-volume consumer board production line.

The currently idle paper line will be converted into a highly flexible consumer board line for folding boxboard and coated unbleached kraft. Production is expected to start in three years’ time. It is expected to generate revenues of €800m a year.

The decision is in line with the company’s strategy to develop renewable packaging, and follows its first conversion at the site last year, where it switched a line from from paper to kraftliner.

The new line will be able to pump out 750,000 tonnes of consumer board. The company is targetting end-use segments including food and beverage packaging, especially frozen and chilled, and dry and fast food.

Stora Enso president and CEO Annica Bresky said: “Renewable packaging continues to be our largest strategic growth area. It’s also a market that is now, for the first time, growing faster than plastics-based alternatives.

“Through this conversion we can build on existing assets for quick and cost-effective time-to-market compared to other investment alternatives. This puts us in a strong position to drive revenue growth and build market share.”

Hannu Kasurinen, executive vice president and head of the Packaging Materials division, said, “The converted line will be the most cost-competitive FBB machine in Europe, also enabling us to optimise production at other sites to unlock further growth.”