Helsinki, Finland, 11 January 2011 -- Stora Enso is strengthening its leading position in corrugated packaging in the growth markets of Central and Eastern Europe by renewing containerboard capacity at its Ostrołęka mill in Poland. The EUR 285 million investment project is scheduled to be completed in the first quarter of 2013. The new containerboard machine with greater capacity and a modern product will not only renew the product offering, it also will improve Stora Enso's overall cost position through efficient internal supply of light-weight containerboard made from recycled fibre. In conjunction with the start-up, Stora Enso plans to shut down containerboard machine PM 2 at Ostrołęka mill.
“Strengthening our competitive position in corrugated packaging in the growing markets of Central and Eastern Europe is at the core of our growth strategy. The investment at Ostrołęka is another concrete step in building sustainable and profitable growth for the Group,” said Jouko Karvinen, CEO of Stora Enso.
“Customer demand for modern light-weight corrugated packaging is increasing rapidly. This investment supports Stora Enso's objective of offering demanding customers new packaging solutions,” said Mats Nordlander, executive vice president, Packaging Business Area.
“Recycled fiber is the dominant raw material for corrugated packaging and continues to win share from virgin fibers. The markets for transport packaging in Central and Eastern Europe have grown and will continue to grow by over 5% per year. This investment will support our growth and increase Stora Enso's self-sufficiency in containerboards from 35% to 60% and it will also clearly improve the cost competitiveness of Stora Enso's Industrial Packaging segment. Stora Enso's integrated RCP collection network in Poland, the new efficient power plant just completed and this new state-of-the-art containerboard machine will make Ostrołęka the benchmark in both cost and product offering in Europe,” Nordlander explained.
Stora Enso's corrugated packaging product portfolio includes transport and consumer packaging, packaging design and machinery. The Group's 20 corrugated packaging plants in Finland, Sweden, Russia, Poland, Hungary, and the Baltic States with total capacity 1.3 billion cubic meters of corrugating packaging used some 560,000 metric tons of containerboard in 2010.
The annual capacity of Ostrołęka mill, which is part of Stora Enso's Industrial Packaging segment, is currently 270,000 metric tons of containerboard and kraft paper. The annual capacity of the new containerboard machine will be 455,000 metric tons and the annual capacity of PM 2 is currently 85,000 metric tons of containerboard.
Stora Enso is a global paper, packaging, and wood products company producing newsprint and book paper, magazine paper, fine paper, consumer board, industrial packaging, and wood products. The Group is the world leader in forest industry sustainability. The company offers its customers solutions based on renewable raw materials. Stora Enso is listed in the Dow Jones Sustainability Index and the FTSE4Good Index. Stora Enso employs some 27,000 people worldwide, and had sales in 2009 amounting to EUR 8.9 billion. Stora Enso shares are listed on NASDAQ OMX Helsinki (STEAV, STERV) and Stockholm (STE A, STE R). In addition, the shares are traded in the USA as ADRs (SEOAY) in the International OTCQX over-the-counter market.