Stora Enso has decided to invest approximately EUR 1 billion to convert the remaining idle paper machine at the Group’s Oulu site in Finland into a high-volume consumer board production line. The investment supports the Group’s growth strategy in renewable packaging by providing new volume for growing packaging segments. Production on the converted machine is estimated to start in early 2025.
Following the first machine conversion at the Oulu site in 2021 from paper to kraftliner, the remaining idle paper line will be converted into a state-of-the-art highly flexible consumer board line for folding box board (FBB) and coated unbleached kraft (CUK). The total annual capacity will be 750,000 tonnes of consumer board. The target end-use segments are food and beverage packaging, especially frozen and chilled, and dry and fast food, mainly in Europe and North America.
“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,” says Stora Enso’s President and CEO Annica Bresky.
The total investment will be approximately EUR 1 billion during 2022–2025. At full capacity, the investment is expected to meet the profitability target of the Packaging Materials division: operational return on operating capital (ROOC) of 20%. Annual sales are expected to be approximately EUR 800 million.