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Stora Enso Invests in its Operations in Austria and Finland
Helsinki, Finland, 21 October 2006 -- Stora Enso has approved three separate investments to be implemented at its Anjala mill, Oulu mill, and Bad St. Leonhard sawmill.

Anjala Mill

Stora Enso is investing EUR 32.4 million in rebuilding the finishing department at its Anjala mill in Finland. The investment will improve the mill's productivity by increasing its finishing capacity and rationalizing operations in the finishing department. The new finishing department is scheduled to be in operation by the end of 2007. The number of employees will decrease by 35 during the first half year of 2008.

Anjala mill's annual production capacity is 515,000 metric tons of book paper, machine-finished coated magazine paper, and improved newsprint.

Oulu Mill

Stora Enso is investing EUR 25.3 million in a new sheeting line at its Oulu mill in Finland. The investment will allow a larger proportion of the mill's output to be sheeted at the mill site. The investment will enable Oulu mill to grow in its core markets in Eastern and Central Europe. The additional sheeting capacity is scheduled to be in operation by mid 2008.

Oulu mill's annual production capacity of 1,015,000 metric tons of coated fine paper will remain unchanged.

Bad St. Leonhard Sawmill

Stora Enso is investing EUR 16.8 million in a cross-laminated element plant at Bad St. Leonhard sawmill in Austria. The investment will provide access to the rapidly growing massive building element market in Central Europe. The plant, with annual capacity of 61,000 m3, is expected to increase the annual sales of Stora Enso Wood Products by EUR 28 million when in full operation. Construction will start in the first quarter of 2007 and is scheduled to be completed in the first quarter of 2008. The investment will increase the number of employees by 53.

Cross-laminated elements are large-sized crosswise glued wooden building elements, which are typically used for intermediate floors, ceilings, and internal and external walls.

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