The investment is intended to accelerate the growth in renewable packaging by offering new volumes for growing packaging segments
Stora Enso announces investment of about €1bn at its Oulu facility in Finland. (Credit: Stora Enso)
Pulp and paper maker Stora Enso is set to invest about €1bn to transform the last remaining idle paper machine into a high-volume consumer board production line at its Oulu facility in Finland.
According to the firm, the investment is intended to accelerate the growth in renewable packaging by offering new volumes for growing packaging segments.
Stora Enso said that the first machine conversion started at the Oulu site in 2021 from paper to kraftliner.
The last idle paper line will be transformed into an advanced, extremely flexible consumer board line for folding box board (FBB) and coated unbleached kraft (CUK).
The converted machine is expected to be operational in early 2025 and will produce a total of 750,000 tonnes of consumer board annually.
Food and beverage packaging, particularly frozen and chilled, as well as dry and fast food, are the targeted end-use markets, with a focus on Europe and North America, the paper firm said.
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.”
The investment is in line with Stora Enso’s commitments to sustainability. The expanded recycling capabilities of the product line of the Packaging Materials business will also enhance circularity, the firm noted.
As a result of the initial conversion in 2021, the overall scope 1 and scope 2 greenhouse gas emissions at the Oulu site are reduced by 80%.
The investment will create 1,500 more indirect employment opportunities in addition to 300 new jobs at the Oulu facility and support roles.