Forest industry Stora Enso plans a billion-dollar investment in Oulu

Forestry company Stora Enso says it is mapping out one billion euros in investments at its Oulu plant. A profitability assessment is now underway and a decision on a possible investment will be made this year.

Already a year ago, the company moved from one mill’s paper machines to make corrugated board, or kraftliner. The planned investment would also mean converting another decommissioned paper machine into a board machine.

This machine would make consumer cartons, ie folding cartons used in frozen, cold and beverage products, as well as cartons used in pharmaceutical and cosmetic packaging, for example.

In addition, a new chemical pulp plant and power plant would be built at the plant.

“Investment would help meet growing customer demand for plastic-substituting food packaging. We will find out the profitability of a possible conversion and how we could make the best possible use of the synergies with the current production and create a modern large-scale factory in Oulu, ”Director of the Packaging Materials Division Hannu Kasurinen says in a press release.

A possible change in the direction of production would increase the annual turnover by approximately EUR 800 million at full capacity utilization. The capital cost of the investment would be estimated at EUR 900–1000 million in 2023–2026.

According to Stora Enso, the investment would increase the consumption of pulpwood in Oulu by about one million cubic meters. According to the company, there would be enough wood because Stora Enso closed the Veitsiluoto plant in Kemi last year.

The investment would create 150-200 jobs, including the logistics and maintenance of the plant. The investment would utilize the company’s own production of chemical pulp.

The annual capacity of the converted machine would be 750,000 tonnes of coated folding boxboard, unbleached surface board and other surface board.