Today : Mar 19, 2025
Business
19 March 2025

Stora Enso Launches New Packaging Board Line In Finland

With an annual capacity of 750,000 tonnes, the new line aims to meet increasing demand for sustainable packaging solutions.

Stora Enso has officially begun the ramp-up of its new consumer packaging board line at its Oulu site in Finland, marking a significant step forward in its production capabilities. Announced today, March 19, 2025, this new line is set to meet the increasing demand for sustainable packaging solutions.

The Oulu site, which previously housed an idle paper machine, will now operate a highly flexible consumer packaging board line designed for folding box board (FBB) and coated unbleached kraft (CUK). This ambitious project, with an annual capacity of 750,000 tonnes, represents an investment of approximately EUR 1 billion. Stora Enso aims to have the first customer deliveries ready by the second quarter of 2025.

The project's timeline is on track, with expectations that the new line will reach EBITDA breakeven by the end of 2025 and achieve full capacity by 2027. By that time, the annual sales from this line are projected to be around EUR 800 million, reflecting the growing market for renewable packaging solutions.

As Hans Sohlström, Stora Enso’s President and CEO, emphasized, "The new line will be the most modern and cost-efficient in Europe. Through this investment, our Oulu unit will become Stora Enso's largest production facility, focusing on future packaging board grades and featuring a flexible production setup. This will strengthen profitability and competitiveness for our consumer board and containerboard offerings."

The Oulu production site currently employs around 650 people, and the new line is expected to boost local wood consumption by approximately one million cubic metres, bringing it to around 3.5 million cubic metres annually. This site will utilize locally sourced wood along with pulp from Stora Enso’s other sites, reinforcing the company’s commitment to sustainability and local economic support.

Furthermore, the announced acquisition of Junnikkala sawmills will enhance the raw material supply chain, ensuring a steady provision of essential inputs such as wood chips and biomass. This strategic move will help Stora Enso maintain a cost-effective, long-term supply of materials needed for production.

Stora Enso’s focus on renewable product offerings aligns with its broader strategy to lead the market in packaging, biomaterials, and wooden construction. The significance of this investment lies not just in its potential profitability, but also in the shift towards sustainable materials as consumer preferences evolve.

In 2024, Stora Enso reported approximately 19,000 employees and group sales of EUR 9 billion, demonstrating its robust presence in the global market. As the demand for eco-friendly packaging options continues to rise, the company is well-positioned to capitalize on this trend.

With the new consumer packaging board line in Oulu, Stora Enso reaffirms its leadership in the renewable products sector, aiming to innovate and enhance its offerings for markets in Europe and North America. The expected outcome of this project not only reflects the company’s operational excellence but also emphasizes its commitment to environmental sustainability.

As the company prepares for the upcoming production milestones, stakeholders will be watching closely to see how this development unfolds. The integration of advanced technology and a focus on sustainable practices underscore Stora Enso’s strategy to remain a leader in the evolving landscape of consumer packaging.