Stora Enso to invest €350m in Oulu paper mill in Finland

30 May 2019 (Last Updated May 30th, 2019 12:05)

Finnish renewable materials company Stora Enso is set to convert the Oulu paper mill in Finland into packaging production.

Stora Enso to invest €350m in Oulu paper mill in Finland
Stora Enso offers renewable solutions in packaging, biomaterials, wooden constructions and paper. Credit: Stora Enso.

Finnish renewable materials company Stora Enso is set to convert the Oulu paper mill in Finland into packaging production.

The company will invest approximately €350m for the conversion of paper machine 7 into virgin-fibre-based kraftliner production. It will close the paper machine 6 and sheeting plant.

In March, the Finnish firm announced plans to convert its Oulu paper mill in Finland into a packaging board production plant.

Stora Enso expects that the converted machine to be ready for production by the end of next year.

The new line for virgin fibre-based kraftliner will offer an annual production capacity of 450,000t.

It will also modify the pulp mill and drying machine for unbleached brown pulp, and improve the environmental performance of the mill.

Stora Enso CEO Karl-Henrik Sundström said: “The conversion of Oulu mill will enable Stora Enso to further improve its position in the growing packaging business and take a major step forward in its transformation.

“We have proven competence in running large conversion projects successfully, as we have already converted one paper machine at Varkaus Mill to produce kraftliner.”

The company also plans to target global export markets with a focus on packaging for industries such as food, fruit and vegetables, and heavy duty packaging.

The packaging firm plans to commence the conversion mid-this year and will work with around 200 contractors to complete the project. The investment is expected to create approximately 180 jobs.

The kraftliner machine is expected to achieve full capacity approximately four years after start-up.

“The kraftliner machine is expected to achieve full capacity approximately four years after start-up.”

Stora Enso is planning to source wood required for the production from private forest owners in Northern Finland.
Following conversion, consumption of wood at the facility will increase to 2.4 million cubic metres a year.

The company also plans to target global export markets with a focus on packaging for industries such as food, fruit and vegetables, and heavy duty packaging.

The company expects to continue paper production at the facility until the end of September 2020.

Stora Enso also noted that Oulu Mill will cease to produce wood-free-coated papers and 365 people will be permanently laid off by the end of 2020.