Stora Enso recently announced that it will invest approximately EUR 110 million to convert a fine paper machine at the Varkaus Mill in Finland to produce virgin-fibre-based containerboard.
The majority of the cost is due to the conversion work required on the paper machine and in the pulp mill.
“Utilising existing assets within Stora Enso and modifying them to a new product line is part of Stora Enso’s transformation to a value-creating renewable materials company focusing on growth markets,” said Stora Enso CEO Jouko Karvinen.
“Varkaus is an ideal mill for this kind of conversion. It has an integrated pulp mill, a power plant and a suitable paper machine," Karvinen said.
Stora Enso noted that renewable-fibre-based packaging has good growth potential in Europe and globally, and the company sees an opportunity to benefit from that growth by investing in competitive kraftliner capacity at Varkaus. Through the machine conversion, Stora Enso is taking advantage of the combination of two market forces: the decreasing global market for paper but increasing global market for renewable packaging board.
