Displaying items by tag: Stora Enso

Stora Enso has initiated a sales process for a possible divestment of four paper production sites. In line with Stora Enso’s strategy, paper is not a strategic growth area for the Group. The divestment intent is aligned with the Group’s strategy to focus on long-term growth potential for its renewable products in packaging, building solutions and biomaterials innovations.

Stora Enso’s paper production sites intended for divestment are: Anjala in Finland, Hylte and Nymölla in Sweden, and Maxau in Germany. The assets are high-quality sites for paper and pulp production with strong infrastructure, and skilled and experienced staff.

“Through divesting a majority of our paper assets, we are able to increase the focus on our defined strategic growth areas of renewable packaging, building solutions and biomaterials innovations. When assessing potential divestment options, we look for new ownership that will provide a sustainable long-term future for the sites and the people that work there,” says President and CEO Annica Bresky.

The four Stora Enso sites are subject to divestment in one or a series of transactions. Stora Enso has not committed to a deadline for the conclusion of the divestment process. The initiated sales process has no immediate effect on Stora Enso’s paper operations which continue to serve their respective customers. Stora Enso’s Langerbrugge site in Belgium will be retained within the Group.

Stora Enso currently has five paper production sites that are supported by divisional sales, management, and administrative functions. In total, the Paper division currently employs approximately 2,200 employees. In 2021, the Paper division’s net sales amounted to EUR 1,703 million.

Stora Enso has retained BofA Securities to assist in the sales process.

Part of the global bioeconomy, Stora Enso is a leading provider of renewable products in packaging, biomaterials, wooden construction and paper, and one of the largest private forest owners in the world. We believe that everything that is made from fossil-based materials today can be made from a tree tomorrow. Stora Enso has approximately 22,000 employees and our sales in 2021 were EUR 10.2 billion. Stora Enso shares are listed on Nasdaq Helsinki Oy (STEAV, STERV) and Nasdaq Stockholm AB (STE A, STE R). In addition, the shares are traded in the USA as ADRs (SEOAY). storaenso.com/investors  

Stora Enso today announced that they will stop all production and sales in Russia until further notice due to the ongoing invasion in Ukraine. Stora Enso has three corrugated packaging plants and two wood products sawmills in Russia, employing around 1,100 people. The Company will also stop all export and import to and from Russia. A mitigation plan has been activated to secure availability of input materials from other sources.

“The war in Ukraine is unacceptable and we are fully behind all sanctions. We will now focus all our attention on supporting our customers and the well-being of our employees,” says Annica Bresky, President and CEO.

Stora Enso’s sales in Russia is approximately 3% of total Group revenues. The impact on Stora Enso’s sales and EBIT is not material.

Part of the global bioeconomy, Stora Enso is a leading provider of renewable products in packaging, biomaterials, wooden construction and paper, and one of the largest private forest owners in the world. We believe that everything that is made from fossil-based materials today can be made from a tree tomorrow. Stora Enso has approximately 22,000 employees and our sales in 2021 were EUR 10.2 billion. Stora Enso shares are listed on Nasdaq Helsinki Oy (STEAV, STERV) and Nasdaq Stockholm AB (STE A, STE R). In addition, the shares are traded in the USA as ADRs (SEOAY). storaenso.com

Teemu Salmi, CIO, Head of IT & Digitalisation and a member of the Group Leadership Team, has decided to leave his position at Stora Enso. After five years in the company, Teemu will assume the CEO position at Finnish cyber security company Nixu. Teemu will continue working in Stora Enso until 20 May 2022.

“Teemu has been instrumental in driving and accelerating Stora Enso’s digitalisation agenda, supporting our transformation to become the renewable materials company. I want to express my gratitude and thanks to Teemu for his contributions to Stora Enso, while also wishing him all the very best for his new exciting career opportunity,” says Annica Bresky, President and CEO at Stora Enso.   

As part of Stora Enso’s new operating model, IT & Digitalization will moving forward be part of the CFO organisation and report to CFO Seppo Parvi. Seppo and Teemu will immediately start the handover process to ensure a smooth transfer of the responsibilities.

"During 2022, we will continue to focus on implementing the decentralized and more efficient operating model in IT & Digitalization. In line with our strategy, this will create further value for all our stakeholders by enabling more empowered divisions and as a result strengthened customer-centricity," says Seppo Parvi.

Part of the global bioeconomy, Stora Enso is a leading provider of renewable products in packaging, biomaterials, wooden construction and paper, and one of the largest private forest owners in the world. We believe that everything that is made from fossil-based materials today can be made from a tree tomorrow. Stora Enso has approximately 22,000 employees and our sales in 2021 were EUR 10.2 billion. Stora Enso shares are listed on Nasdaq Helsinki Oy (STEAV, STERV) and Nasdaq Stockholm AB (STE A, STE R). In addition, the shares are traded in the USA as ADRs (SEOAY). storaenso.com/investors

Stora Enso has just announced that it has signed a letter of intent to divest the Kvarnsveden site in Sweden to Northvolt. Due to structural decline in demand for graphical paper, in April 2021 Stora Enso announced a plan to close its Kvarnsveden paper production site. Founded in 1900, Kvarnsveden produced pulp and paper for over 120 years until production ended in September 2021.

Northvolt is a European supplier of sustainable battery cells and will develop the site into a battery manufacturing plant, reusing and refurbishing the existing facilities and site infrastructure. According to Northvolt, the gigafactory is expected to start the first part of its operations in late 2024, and will employ up to 1,000 people.

“Sustainability is the main priority for Stora Enso, and this also has to be addressed in difficult times. Hence, a key focus since our decision to close the site has been to find a new owner that can continue Stora Enso’s long and sustainability-driven legacy at Kvarnsveden, to the benefit of the local society. Like Stora Enso, Northvolt delivers modern and innovative solutions that contribute to a climate-friendly future. Through this agreement, Kvarnsveden will become a foundation for continued growth, both for Northvolt and the city of Borlänge,” says Per Lyrvall, Sweden country manager at Stora Enso.

Kvarnsveden

The Kvarnsveden site has many advantages including availability of skilled workforce as well as a railway link, a connection to the national electricity grid, and the availability of clean water. According to Northvolt, the site will be powered using 100 percent clean energy, and will feature both cathode material and cell production.

Peter Carlsson, Co-Founder and CEO of Northvolt, comments: “Since Northvolt was founded, we have focused on circular battery production, but this is the first time we are reusing an entire production site. With its access to energy, industrial water and the broad production know-how in the region, Kvarnsveden is an optimal site for a gigafactory. We are thrilled to be able to open a new chapter in Borlänge’s history as a global industrial hub.”

The final agreement regarding the transaction is expected to be signed in the next few months. Certain infrastructure and equipment, including the boiler, are subject to separate processes and are not included in the Northvolt scope. The transaction impact on Stora Enso's operational EBIT or net debt is not considered material. 

Part of the global bioeconomy, Stora Enso is a leading provider of renewable products in packaging, biomaterials, wooden construction and paper, and one of the largest private forest owners in the world. We believe that everything that is made from fossil-based materials today can be made from a tree tomorrow. Stora Enso has approximately 22,000 employees and our sales in 2021 were EUR 10.2 billion. Stora Enso shares are listed on Nasdaq Helsinki Oy (STEAV, STERV) and Nasdaq Stockholm AB (STE A, STE R). In addition, the shares are traded in the USA as ADRs (SEOAY). storaenso.com

Stora Enso is starting a feasibility study for the possible conversion of an idle paper machine at its Oulu site in Finland for a high-volume consumer board line. On a successful completion of the feasibility study, an investment decision could be made by the end of 2022 with start-up in 2025.

Stora Enso’s strategy is to invest in growth to support the strong, continuous demand for sustainable packaging. This is one of the key strategic focus areas in which the Group is building its market share with both existing and new customers. Stora Enso already holds a leading global market position in this segment. The potential investment in Oulu would target high-quality and low carbon-footprint packaging segments for frozen and chilled food and beverages, as well as for non-food applications such as pharma and cosmetics. The feasibility study will also assess how the conversion could contribute to Stora Enso’s science-based targets regarding operational CO₂ emissions.

“This investment would respond to the strong customer demand to replace plastic in packaging. During the study, we will evaluate the profitability of the possible conversion and how to optimise current production synergies to create a modern mega-site at Oulu. In addition to strong demand, we can rely on an experienced team and what we learnt from the first successful conversion in Oulu, which is already ahead of schedule on profitability,” says Hannu Kasurinen, Executive Vice President, Packaging Materials division.

Consumer packaging board products

Based on full ramp-up, the potential top line sales impact of the conversion would gradually reach an annual level of EUR 800 million. Capital expenditure is estimated to be EUR 900–1,000 million during 2023–2026. The investment would include the conversion of the former paper machine and the sheeting facility. It would also include investments in wood handling, the bleached chemi-thermomechanical pulp (BCTMP) plant, the biomass boiler and the effluent treatment plant.

The increase in pulp wood consumption in Oulu would be approximately one million cubic metres, utilising the volumes freed up after closure of the Veitsiluoto site. With the investment, an estimated 150−200 new employees would be needed, including logistics and maintenance. The investment would also utilise captive chemical pulp, creating a net reduction of approximately 300,000 tonnes in Stora Enso’s total market pulp exposure.

The planned annual capacity of the converted machine would be 750,000 tonnes of folding box board (FBB), coated unbleached kraft (CUK) and liner grades.

Part of the global bioeconomy, Stora Enso is a leading provider of renewable products in packaging, biomaterials, wooden construction and paper, and one of the largest private forest owners in the world. We believe that everything that is made from fossil-based materials today can be made from a tree tomorrow. Stora Enso has approximately 22,000 employees and our sales in 2021 were EUR 10.2 billion. Stora Enso shares are listed on Nasdaq Helsinki Oy (STEAV, STERV) and Nasdaq Stockholm AB (STE A, STE R). In addition, the shares are traded in the USA as ADRs (SEOAY). storaenso.com

Stora Enso and Picadeli, Europe’s leading take-away salad bar company, are introducing renewable formed fiber lids to replace single-use plastics in take-away packaging. The lids are made of PureFiber™ by Stora Enso, and they are plastic-free, recyclable, and biodegradable. The innovation will help Picadeli reduce approximately 120 tonnes of plastic waste annually.  

“Our strategic aim is to grow with sustainable, scalable, and innovative packaging solutions. We do this by supporting strong forerunner brands such as Picadeli in meeting the growing consumer demand for plastic-free and circular solutions. A salad bowl lid is a good example of an everyday single-use plastic item that can make an important difference on climate footprint when replaced by a sustainable alternative,” says Sohrab Kazemahvazi, SVP Formed Fiber at Stora Enso.

Packaging accounts for 40% of the world’s plastics, most of which are made from fossil oil. The carbon footprint of the PureFiber™ lid is up to 75% lower compared to alternative materials such as plastic or bagasse. PureFiber™ products are produced from wood-based formed fiber using green energy. They contain no plastic, no per- and polyfluoroalkyl substances (PFAS), or any other forever chemicals. The lids provide a good user experience and tightly seal the food inside. The new formed fiber lids will be available for consumers at Picadeli salad bars starting March 2022.

“Food and sustainability have been much discussed in recent years but knowing how to make choices that are both healthy and come with a low carbon footprint is not always easy,” says David von Laskowski, Group CEO at Picadeli. “We work continuously to make tasty, sustainable, and healthy fast food more accessible. Launching the formed fiber lid will further reduce our carbon footprint, supporting our business strategy for sustainability.”

PureFiber™ can be used in a wide range of applications including single-use food packaging items such as plastic-free cups, bowls, clamshells, plates, and lids. PureFiber™ can also be used to replace plastic packaging for other industries, such as in agriculture, electronics, and cosmetics. Formed fiber is a growth business for Stora Enso, and the Group recently announced expansion of its formed fiber production capacity in Europe. The fiber raw material comes from sustainably managed forests.

About Picadeli

Picadeli is a Swedish salad pioneer, driven by the belief that fast food should be food that’s good for you. The idea is simple; through self-served salad bars, democratize healthy food by making it accessible, affordable and appetizing. Since the start in 2009, Picadeli has enabled the grocery retail and convenience stores to offer consumers a fresh and tasty concept and the high-tech salad bars are now to be found in some 2000 stores around Europe and the United States. The company currently has an annual turnover of more than SEK 1.4 billion which represents close to SEK 3 billion in retail value.

Stora Enso’s Sustainability Report 2020 was chosen as the best in Finland in a competition organised by an independent group of expert organisations. In addition, for the fourth consecutive year, Stora Enso’s report has been included in the top ten sustainability reports globally, according to the World Business Council for Sustainable Development (WBCSD).

Stora Enso’s Sustainability Report won the award for Finland’s best sustainability report of the year. The report was particularly recognised for being comprehensive, strongly linked to the company’s core business, and it excelled in all areas of the competition. In addition, Stora Enso’s report was the winner of the stakeholder category, this year chosen by the Finnish Climate Fund.

“Sustainability performance is high on the agenda for all our stakeholders and we are proud to be acknowledged for our reporting. In addition to being informative and transparent, good reporting needs to be engaging and compelling, while easy to absorb. We constantly develop our reporting to reflect sustainability contributions, as well as pursuing our ambitions and meeting new challenges,” says Annette Stube, EVP Sustainability at Stora Enso.

In WBCSD’s Reporting matters publication, Stora Enso’s report is recognised as an example of best practice in how it outlines the materiality assessment process to identify and prioritise significant sustainability impacts.

The Stora Enso Annual Report 2020 consists of Strategy, Financials, Sustainability, Governance and Remuneration. The Annual Report is available at storaenso.com/annualreport.

The sustainability report review has been organised since 1996. This year it was carried out in cooperation with Aalto University, Climate Leadership Coalition, Finland's Sustainable Investment Forum (Finsif), Hanken, Nasdaq, the Finnish Association of Auditors, the Association for Environmental Management, the Ministry of the Environment and the corporate responsibility network FIBS. This year, a total of 47 sustainability reports from different organisations were evaluated.

The WBCSD produces Reporting matters to help improve the effectiveness of non-financial corporate reporting. The publication lists Stora Enso’s Sustainability Report as one of the top ten in the world out of the 168 reviewed within the scope of the publication, without disclosing the exact rankings.

Part of the bioeconomy, Stora Enso is a leading global provider of renewable solutions in packaging, biomaterials, wooden construction and paper. We employ some 23 000 people and our shares are listed on the Helsinki (STEAV, STERV) and Stockholm (STE A, STE R) stock exchanges. Our fiber-based materials are renewable, recyclable and fossil free. Our solutions offer low-carbon alternatives to products based on finite resources. We believe that everything that is made from fossil-based materials today can be made from a tree tomorrow. storaenso.com

Performa Light CarbonZero™ by Stora Enso is the first carbon neutral cartonboard offer in the market. It helps Stora Enso’s customers to have a smaller climate impact.  

Performa Light CarbonZero is a carbon neutral, renewable and recyclable cartonboard offering that helps Stora Enso’s customers to achieve carbon-related sustainability targets and show concrete and measurable actions on climate change through their packaging.

Performa Light CarbonZero is produced at Stora Enso’s Fors site in Sweden, which is fossil carbon emission-free in its electricity and steam production and from the beginning of 2022 also in internal logistics. This is a result of continuous work and investments in improving the operations. The production is therefore already very low on greenhouse gas emissions. To make Performa Light CarbonZero carbon neutral, the currently unavoidable emissions originating from raw material production are compensated with a well-established offsetting service provided by external partner South Pole.

Performa Light CarbonZero™

“Since sustainability is more and more a deciding factor in consumer purchases, we expect the demand for carbon neutral products to grow in the future. Carbon neutral Performa Light CarbonZero will help our customers to have a smaller climate impact and to differentiate on the market through their packaging” says Dmitry Panfilov, VP, Head of Business Line FBB and SBS.

Sustainability is at the core of Stora Enso, which culminates in the goal to become 100% circular, net biodiversity positive and net carbon positive by 2050. Stora Enso is already ambitiously reducing greenhouse gas emissions from its operations and value chain, and the share of fossil fuels in the group’s overall energy consumption is low. This has made the move towards offering carbon neutral material possible.

“Our priority is always to reduce fossil emissions in our operations and value chain as much as we can, and our goal is to eventually offer carbon neutral products without offsetting. However, some emissions are still currently unavoidable, which is why we use carbon offsetting to be able to offer carbon neutral packaging material already now," says Kristiina Veitola, VP, Sustainability, Packaging Materials division.

In addition to carbon neutrality, Performa Light CarbonZero is ideal for folding cartons for chocolate and confectionery, cosmetics and beauty care, healthcare and other premium packaging. The superior quality of Performa Light makes it attractive for premium brands. It has an exceptional visual appearance and thanks to FiberLight Tec™ by Stora Enso, a patented fiber treatment technology, the product is lightweight without compromising on strength.

Stora Enso
Part of the bioeconomy, Stora Enso is a leading global provider of renewable solutions in packaging, biomaterials, wooden construction and paper. We employ some 23 000 people in more than 30 countries and our shares are listed on the Helsinki (STEAV, STERV) and Stockholm (STE A, STE R) stock exchanges. Our fiber-based materials are renewable, recyclable and fossil free. Our solutions offer low-carbon alternatives to products based on finite resources. We believe that everything that is made from fossil-based materials today can be made from a tree tomorrow.

For further information, please contact:
Elina Huopio
Product Manager, FBB
+358 40 5025372
elina.huopio @ storaenso.com

Stora Enso has introduced the newest addition to its NaturaFluff pulp product portfolio, NaturaFluff Eco by Stora Enso. NaturaFluff Eco is a new fluff pulp grade with a lower carbon footprint, enabling producers of hygiene products – such as baby diapers, incontinence pads and feminine care – to offer consumers a new generation of environmentally friendly, absorbent hygiene products.

Consumers are increasingly looking for products that are natural, safe to use and have a low environmental footprint. NaturaFluff Eco is an oxygen-delignified fluff pulp, which means that no bleaching chemicals are used in its production. As a result, the fluff pulp has a warm, natural beige colour and a roughly 30% lower carbon footprint in comparison to traditional fluff pulp, without compromising on product performance.

NaturaFluff Eco is perfectly suited for use in demanding hygiene applications, such as baby care, feminine care, and adult incontinence care products, or in air-laid nonwoven materials such as napkins, table-tops and various pads.

NaturaFluff Eco2

“By removing bleaching from the production process and only treating the pulp with oxygen to remove lignin, we have produced a fluff pulp with a significantly lower carbon footprint, while still providing the excellent performance properties of our regular fluff pulp,” says Kirsi Seppäläinen, SVP Marketing, Competitive Intelligence and Product Management at Stora Enso’s Biomaterials division.

“This new NaturaFluff pulp grade fulfils all the requirements of a purely natural raw material. It is made from wood and comes from sustainably managed forests. Its light beige hue clearly communicates the natural source of its origin, and as a raw material, it is fully biodegradable,” Seppäläinen adds.

Stora Enso produces its fluff pulp, including NaturaFluff Eco, at its Skutskär Mill in Sweden, where the first commercial volumes have recently been completed. Producers of absorbent hygiene products are now trialling the new material for use on consumer markets.

All Stora Enso’s NaturaFluff pulp grades fulfil the requirements of all common eco-labels such as the EU Eco label, Nordic Swan and Blue Angel, among others. Stora Enso’s fluff pulp is FSC® and PEFC™ certified, which means that the final products come from responsibly managed forests.

Part of the bioeconomy, Stora Enso is a leading global provider of renewable solutions in packaging, biomaterials, wooden constructions and paper. We believe that everything that is made from fossil-based materials today can be made from a tree tomorrow. Stora Enso has some 23 000 employees, and sales in over 50 countries. Our sales in 2020 were EUR 8.6 billion. Stora Enso shares are listed on Nasdaq Helsinki Oy (STEAV, STERV) and Nasdaq Stockholm AB (STE A, STE R). In addition, the shares are traded in the USA as ADRs (SEOAY) storaenso.com

Stora Enso is investing EUR 97 million to expand the board production at the Skoghall site in Sweden.  At the same time, Stora Enso is initiating a pre-feasibility study to convert the second, currently idle, line at its Oulu site in Finland, to a packaging board line.

Market demand for sustainable packaging is increasing. Stora Enso is a global leader in consumer packaging with strong market positions in attractive end-uses. The investment in Skoghall will further drive profitable growth in attractive end-use segments, such as liquid packaging board and coated unbleached kraftliner, 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.

Growth in sustainable packaging is a long-term strategic objective for Stora Enso. Following the successful conversion in Oulu from paper to kraftliner production for food applications, Stora Enso has decided to initiate a pre-feasibility study to convert the second, idle paper line into a packaging board line. The first conversion ramp-up in Oulu has proceeded ahead of plan since production started at the beginning of the year. A second conversion would further improve the Oulu site’s flexibility and competitiveness, through integrated pulp availability, additional fixed and variable cost savings, and ability to utilise the adjacent deep-sea harbour. The pre-feasibility study will be completed early 2022.

“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. 

Stora Enso’s Oulu site is a premium kraftliner producer in northern Finland. In early 2021, one of two former paper machines, was converted to kraftliner for consumer packaging applications. The pulp mill and drying machine were modified to produce unbleached brown pulp. The second former paper production line has been kept idle in the meantime. When fully ramped up, the annual capacity of the first line is 450 000 tonnes of kraftliner and 550 000 tonnes of pulp.

Earlier releases:
11 November 2020: Stora Enso to start feasibility study for expanding pulp and board capacity at Skoghall Mill
29 January 2021: Production started at Stora Enso’s Oulu Mill

Part of the bioeconomy, Stora Enso is a leading global provider of renewable solutions in packaging, biomaterials, wooden constructions and paper. We believe that everything that is made from fossil-based materials today can be made from a tree tomorrow. Stora Enso has some 23 000 employees, and sales in over 50 countries. Our sales in 2020 were EUR 8.6 billion. Stora Enso shares are listed on Nasdaq Helsinki (STEAV, STERV) and Nasdaq Stockholm (STE A, STE R). In addition, the shares are traded in the USA as ADRs (SEOAY). storaenso.com