Stora Enso invests EUR 94 million to grow in renewable materials

Photo: Stora Enso

Stora Enso will invest EUR 94 million to grow in renewable materials and to increase competitiveness in consumer board and biomaterials. EUR 52 million will be invested to increase the dissolving pulp production capacity at Enocell Mill and EUR 42 million to enhance the availability of the chemi-thermomechanical pulp (CTMP) at Imatra Mills. Both mills are located in Finland.

“We continue to drive our transformation to a renewable materials growth company. While investing in our Finnish mills, we expect the competitiveness of Finland’s export industry to be ensured and further improved globally,” says Karl-Henrik Sundström, CEO of Stora Enso.


Investments in renewable materials substituting fossil-based alternatives


Enocell Mill, part of the Biomaterials division, will be converted to focus entirely on production of dissolving pulp. The softwood pulp production will be gradually discontinued after the investment. The mill will have a total capacity of 430 000 tonnes dissolving pulp annually, whereof 185 000 tonnes hardwood and 245 000 tonnes softwood dissolving pulp. The investment is scheduled to be completed during the second half of 2019. It is expected to exceed the Biomaterials division’s profitability target, operational return on operating capital (ROOC) of 15%, and to have a positive impact on sales.


Dissolving pulp is used as a raw material replacing cotton and fossil-based materials, such as polyester. The dissolving pulp product segment is growing above the industrial average. The growth is driven by increased demand for non-woven applications, and viscose-type fabrics in the textile industry.


“We aim to improve our pulp mix to differentiate and secure competitiveness in the long term. At our Nordic pulp mills, this means focusing on special grades, such as fluff and dissolving pulp. The investment also supports Enocell Mill to become an integrated biorefinery plant for new bio-based chemicals,” says Markus Mannström, head of Stora Enso’s Biomaterials division.


The investment at Imatra Mills, part of the Consumer Board division, includes a new CTMP drying and re-pulping plant as well as extension of the pulp warehouse. This aims to enhance the availability of CTMP and to drive the commercialisation of micro-fibrillated cellulose (MFC). Due to its high strength and 100% renewable raw materials, MFC is designed to outperform fossil-based materials, such as plastics, in a variety of applications. The project is scheduled to be completed in the first half of 2019. The investment is expected to exceed the Consumer Board division’s profitability target, operational return on operating capital (ROOC) of 20%, and to have a marginal impact on sales.


“This investment drives further growth and competitiveness in liquid packaging and food service board. It also supports the ongoing MFC investment which will meet customer demand of products made with less raw materials (source reduction), enhanced strength, light weight and renewable barrier materials,” says Annica Bresky, head of Stora Enso’s Consumer Board division.


Both of these investments are included in Stora Enso's capital expenditure guidance.