Tuesday, July 16, 2024
Stora Enso has secured a new EUR 435 million bilateral loan from the European Investment Bank (EIB) to support its expansion in renewable, fibre-based consumer packaging board.
Part of Stora Enso’s EUR 1 billion investment in its Oulu mill in Finland will be funded by this new long-term bilateral loan. The loan features an amortising structure, with final repayment expected in 2036, thereby extending the Group’s debt maturity profile. The mill is set to commence operations in the first half of 2025 with a newly converted consumer board production line, making it one of the most modern and cost-efficient packaging material production sites in Europe.
“The investment in Oulu supports our growth strategy in renewable, circular packaging by providing new volume for the growing packaging segment. The wood fiber is sourced from sustainably managed forests in the Nordics, and the boards are designed to replace plastics in food and personal care packaging,” says Hannu Kasurinen, Executive Vice President, Packaging Materials Division.
“This new loan with EIB will not only provide us with financial flexibility, but it also underscores our commitment to sustainable, profitable growth. Securing access to long-term capital from a variety of sources is a pivotal element of our strategy, as it enables us to invest in new growth opportunities,” says Kaarlo Höysniemi, SVP Group Treasury.
As a key player in the global bioeconomy, Stora Enso is a leading provider of renewable products in packaging, biomaterials, and wooden construction, and is among the largest private forest owners worldwide. The company adds value through its low-carbon, recyclable fibre-based products, helping customers meet the growing demand for renewable, sustainable solutions. Stora Enso employs approximately 20,000 people, with sales reaching EUR 9.4 billion in 2023. The company’s shares are listed on Nasdaq Helsinki Oy (STEAV, STERV) and Nasdaq Stockholm AB (STE A, STE R), and are also traded on OTC Markets (OTCQX) in the USA as ADRs and ordinary shares (SEOAY, SEOFF, SEOJF).
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Tags: bioeconomy, EUR 435 Million, European Investment Bank, fibre-based packaging, renewable packaging, renewable products, Stora Enso, wood and panel, wood industry news, woodworking, woodworking and manufacturing, woodworking industry, woodworking magazine, woodworking updates
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