Papermaking giant Stora Enso is investing €1bn to convert a former paper machine at its Oulu site in Finland into a high-volume, consumer board, production line.
The currently idle paper line will be converted into a highly flexible consumer board line for folding boxboard and coated unbleached kraft. Production is expected to start in three years’ time. It is expected to generate revenues of €800m a year.
Product from the new line will be coming to Australia, with Stora Enso selling direct by the container load, and through merchants such as Ball & Doggett and Spicers by the pallet.
The decision is in line with the company’s strategy to develop renewable packaging, and follows its first conversion at the site last year, where it switched a line from to kraftliner. the millm previously produced fine paper.
The new line will be able to pump out 750,000 tonnes of consumer board. The company is targetting end-use segments including food and beverage packaging, especially frozen and chilled, and dry and fast food.
Stora Enso president and CEO Annica Bresky said: “Renewable packaging continues to be our largest strategic growth area. It’s also a market that is now, for the first time, growing faster than plastics-based alternatives.
“Through this conversion we can build on existing assets for quick and cost-effective time-to-market compared to other investment alternatives. This puts us in a strong position to drive revenue growth and build market share.”
Stora Enso says the investment is fully aligned with its sustainability commitments. It says it will support circularity by further enhancing the recycling performance of the Packaging Materials division’s product portfolio. The Oulu site’s total scope 1 and 2 greenhouse gas emissions will remain at what the company says is a low level, as they were already reduced by 80 per cent during the first conversion in last year.
Hannu Kasurinen, executive vice president and head of the Packaging Materials division, said, “This investment will develop our Oulu unit into a mega site, improving profitability and competitiveness for both our consumer board and containerboard offerings. The converted line will be the most cost-competitive FBB machine in Europe, also enabling us to optimise production at other sites to unlock further growth.”
