The strategic decision made in autumn 2022 to invest in Oulu has now been implemented. The previously closed paper machine has been successfully modernized to meet the growing demand for consumer packaging board. This significant investment is Stora Enso's clear response to the global need to develop more sustainable and more recyclable packaging materials, especially for food and hygiene products.
“In recent years, around three out of four of Stora Enso’s investment decisions have been in renewable packaging, and already around 60 percent of our Group-level revenue is generated from it. The new packaging board line in Oulu is very important for us, as it strengthens our leading position as a developer of sustainable packaging solutions,” says Stora Enso’s CEO. Hans Sohlstrom.
The Oulu factory is a strategically solid anchor
Despite geopolitical uncertainty and global trade tensions, Sohlström insists that the Oulu mill renovation remains strategically justified. The stability of the packaging board market and the increasing delivery volumes of the new Oulu line support this view.
"The start-up of the new packaging board line has been excellent in terms of quality and production volumes – the quality achieved in particular has been very promising. With this investment, the Oulu mill will develop into a strategically significant production hub for Stora Enso, where mill integration is advanced," says Sohlström.
In addition to the new consumer packaging board line's annual capacity of 750.000 tonnes, the Oulu mill produces approximately 450.000 tonnes of corrugated board raw material and 550.000 tonnes of unbleached softwood pulp annually. Some of the pulp is used in the mill's own board production and some is sold.
Sawmill secures the giant mill's wood flows
The Oulu mill is an increasingly important part of Stora Enso’s production network, which places even greater pressure on securing raw material supplies. Stora Enso has therefore made a significant strategic move to secure the mega mill’s wood supply. In October 2024, the company announced that it had acquired the entire share capital of Junnikkala Oy. The transaction includes sawmills in Kalajoki, Oulainen and Oulu, as well as the Kalajoki further processing unit.
The acquisition will bring Stora Enso ownership of a modern and efficient sawmill in the Oulu industrial area. Junnikkala Oy's three sawmills have an annual capacity of approximately 700.000 cubic metres of sawn timber. Stora Enso's Oulu mill will use approximately 3,5 million cubic metres of pulpwood annually. The wood for the Junnikkala sawmills and the Oulu mill will be procured by Stora Enso's Finnish Wood Procurement.
The Junnikkala acquisition not only increases Stora Enso's direct wood procurement in the Oulu region, but also strengthens regional cooperation and logistics. By owning local sawmills, Stora Enso can streamline wood transportation and secure raw material supplies well into the future.
Technology accelerates material efficiency and reduces emissions
The new packaging board line in Oulu uses advanced technology to improve material efficiency and reduce emissions. One example is Stora Enso's patented FiberLight Tec™ fiber processing technology, which enables the production of lighter, yet still strong and rigid boards.
“Folding boards made with Stora Enso's FiberLight Tec technology are up to a third lighter than traditional boards, but their strength and bulk properties are maintained or even improved. This lightness reduces material consumption and can also reduce transport emissions,” Sohlström explains.
The Oulu mill is strongly committed to sustainable business and Stora Enso's environmental goals. This is reflected, for example, in increasing its own energy production and utilizing secondary heat in the district heating network of the city of Oulu and other operating locations, as well as in companies in the surrounding areas. The new packaging board line is designed to increasingly replace fossil-based materials with renewable and recyclable alternatives.
The forest industry invests in future growth
The forest industry's confidence in growing demand is reflected in significant investments. Stora Enso's new packaging board line in Oulu is one example. Other companies in the industry are also active.
Metsä Group's approximately two billion euro bioproduct mill in Kemi was completed in 2023. UPM is investing 550 million euro in an industrial-scale biorefinery in Leuna, Germany, with commercial production expected to begin in the second half of 2025.
In June 2023, Metsä Wood decided to build a new, EUR 300 million kerto wood mill in Äänekoski for the needs of the construction industry. It is estimated to start up at the end of 2026.
Metsä Board is investing EUR 210 million in increasing the folding boxboard capacity at the Husum mill. The ramp-up of additional capacity, which began in autumn 2023, aims to reach full production by the end of 2025. In addition, the company is modernizing the Simpele board mill.
Metsä Tissue will expand its virgin fiber-based tissue paper production in Mariestad, Sweden, in 2023–2025 with an investment of approximately EUR 370 million, which is one of the largest in the European tissue paper industry.
Metsä Group is also planning an investment program of approximately EUR 100 million to develop and modernize the Mänttä tissue paper mill over the next five years.
“We are investing in reducing Stora Enso's carbon footprint, where we are already ahead of our targets. 94 percent of our products are already recyclable, and our goal is 100 percent by 2030. We are also promoting biodiversity through 15 of our own indicators and cooperation with the International Union for Conservation of Nature,” Sohlström lists.
A valued partner for sustainable development
Sohlström has met closely with the company's major customers over the past year and a half, and these meetings have strengthened Stora Enso's image as a valued development partner. The company's active investment in product and production development helps customers improve their own energy efficiency, reduce their emissions and thus promote business profitability. Sustainable development is not just an environmental responsibility, but it is a significant demand driver for Stora Enso, and it is strategically wise for the company to invest in it.
However, the greener direction of the forest industry brings its own challenges. Ensuring a sufficient supply of high-quality domestic wood in the future requires continuous investment in forest growth and careful management.
"I think the Finnish government has done a good job in this regard. It is important to highlight the importance of sustainable forestry and improve common understanding of carbon sinks, wood production and biodiversity. Finland must now actively seek ways to increase forest growth through systematic and more precise forest management," Sohlström sums up.
