Tuesday, November 2, 2021
Stora Enso decides to expand business by increasing investment with EUR 97 million in Skoghall site in Sweden. Stora Enso is further initiating a pre-feasibility study to convert the second, currently idle, line at its Oulu site in Finland, to a packaging board line.
Overall demand for sustainable packaging is increasing rapidly in the market. Today, the brand has evolved as one of the key players in the consumer packaging market. As one of the market leaders it is expected to soon attract profitable growth in segments such as liquid packaging board and coated unbleached kraft, and is expected to be completed in the second half of 2023. Following the investment, the annual packaging board production at Skoghall can be increased by approximately 100 000 tonnes, to a total capacity exceeding 900 000 tonnes, subject to environmental permits.
The investment decision follows the completion of the feasibility study announced in November 2020. Based on the study, Stora Enso has decided not to go ahead with the originally planned pulp capacity expansion. The original feasibility study had an estimated capital expenditure of approximately EUR 800–850 million for both pulp and board capacity expansion. The board expansion in Skoghall will be implemented through debottlenecking of one of the existing production lines, and executed in two steps, utilising the scheduled maintenance stops.
“Skoghall is one of our key integrated production sites for eco-friendly packaging materials. The investment strengthens Stora Enso’s capability to produce high-quality and cost-competitive consumer board grades within the growing core segments of liquid and food packaging. In Oulu, the ramp-up of the first converted production line has been successfully executed, reaching towards full capacity, quality requirements as well as profitability ahead of plan. Through both these growth initiatives we are demonstrating speedy time-to-market and ability to respond to the increasing demand for more sustainable packaging,” says Hannu Kasurinen, EVP Stora Enso’s Packaging Materials division.
Stora Enso’s Skoghall site in western Sweden is a modern, world-class producer of consumer packaging board, for liquid packaging and dry food packaging. Total annual production currently exceeds 800 000 tonnes of board.
Tags: Stora Enso, sweden, wood packaging, woodworking and manufacturing, woodworking and processing, woodworking and timber processing industry, woodworking industry, woodworking technology
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