Stora Enso invests to strengthen pulp production sites in Europe

Stora Enso invests to strengthen pulp production sites in Europe

Business

Investments to address growing demand for renewable packaging materials and hygiene products

Stora Enso strengthens its focus on specialised pulp grades by investing EUR 38 million in unbleached kraft pulp (UKP) production at its Enocell site in Finland and EUR 42 million in fluff pulp production improvement at its Skutskär site in Sweden. These investments will support the growing consumer demand for non-bleached renewable packaging materials and hygiene products respectively.

Stora Enso site in Skutskär, Sweden
Stora Enso site in Skutskär, Sweden © Stora Enso

By increasing the share of UKP in the pulp portfolio, Stora Enso continues on its strategic path to develop more specialised Nordic pulp grades while optimising its share in standard market pulp. The long-term trends point towards consumer preference for less bleached or brown fibre-based renewable packaging products. Following the investment, the Enocell site will be able to flexibly produce UKP and Nordic Bleached Softwood Kraft (NBSK) pulp. Due to the reduced use of bleaching chemicals, the carbon footprint per tonne of produced UKP will be more than 20% lower than the equivalent amount of bleached pulp produced at the Enocell site. The investment is expected to be completed during the last quarter of 2024.

The investment in fluff pulp production improvement at the Skutskär site strengthens Stora Enso's position as the leading fluff pulp producer in Europe. Due to the upgrades made with the investment, the Group can meet customer demand for specific roll sizes, improve work safety, and grow fluff pulp production at the Skutskär site. The investment is expected to be completed during the second quarter of 2024.

"Through optimising our pulp portfolio, we advance the more specialised pulp offering, while also improving production and sustainability performance. This will allow us to meet the rapidly growing demand for using unbleached and less bleached pulp in packaging and hygiene applications," says Johanna Hagelberg, Executive Vice President, Biomaterials division at Stora Enso.

Both investments fall within the Group's capital expenditure guidance.

Stora Enso's Enocell site's annual capacity is 630,000 tonnes of softwood and hardwood pulp. The site employs approximately 280 people. Stora Enso's Skutskär site's annual capacity is 545,000 tonnes of fluff, softwood and hardwood pulps. The site employs approximately 420 people.

This article was originally published by Stora Enso.

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