Finnish renewable packaging solution provider Stora Enso is planning to consolidate manufacturing of corrugated packaging at its plant in Lahti, Finland.

Under the proposed plan, Stora Enso will invest around €19m in new machinery and supporting infrastructure, including a new corrugator in Lahti.

Expected to begin by November, the project will be completed by the end of the first quarter of 2018.

"The plan to potentially consolidate our corrugated operations in Finland is largely driven by the need to improve profitability."

Stora Enso will close its plant in Heinola, and transfer its packaging manufacturing operations to the new facility.

With the initiative, the company intends to create a centre of excellence for corrugated packaging in Lahti as well as boost profitability and competitiveness.

Stora Enso Division Packaging Solutions Corrugated Nordics SVP and head Peter Torstensson said: “The plan to potentially consolidate our corrugated operations in Finland is largely driven by the need to improve profitability and strengthen our competitive edge.

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“In addition to the planned investment, our strong infrastructure in Lahti would provide us with a world-class asset base to better serve our customers.”

Stora Enso said that the consolidation would not affect corrugated packaging production at its Kristiinankaupunki plant, or its Heinola fluting mill.

However, a total of 60 employees currently working at the Lahti and Heinola plants will lose their jobs.

With around 26,000 employees in more than 35 countries, Stora Enso provides renewable solutions in packaging, biomaterials, wooden constructions and paper markets.

The company recently inaugurated a new sawmill in Murów, Poland.