Stora Enso acquires Finnish sawmill company to fortify wood supply chain for packaging board site

Stora Enso is acquiring Finnish sawmill operator Junnikkala Oy in a move to secure a cost-effective wood supply for its packaging board site in Oulu, Finland. The acquisition, valued at up to €137 million (US$148 million), is expected to close in the first half of 2025. 

Junnikkala Oy specializes in sawn timber and processed wood products for domestic and international markets. Three sawmills are operating in Finland, including a new facility close to Stora Enso’s Oulu site. The sawmills will provide a long-term supply of raw materials, such as wood chips, pulpwood and internally sourced biomass.

Hans Sohlström, Stora Enso’s president and CEO says: “We are preparing for the start-up of our new converted packaging board line in Oulu and this acquisition will establish a solid foundation for our wood procurement. It will also further enhance operational efficiency and optimize the Oulu production site and sawmills as an integrated unit, while also strengthening our wood products offering.”

This operational reorganization is expected to optimize resource utilization across Stora Enso’s facilities by ensuring a stable, integrated supply of sawlogs, pulpwood and energy wood.

The acquisition will expand Stora Enso’s influence in the Baltic Rim wood market by reinforcing its sawlog and pulpwood sourcing capabilities. With this addition, the company’s annual wood procurement in Finland is projected to increase by approximately 1.7 million cubic meters, while total saw-milling capacity will grow by approximately 700,000 cubic meters. 

This enhanced capacity is expected to yield operational synergies, estimated at €15 million (US$16 million) annually, following the full integration of Junnikkala’s sawmills and the new Oulu sawmill’s activation.

Stora Enso recently announced a range of remedial measures after being found to have committed a serious nature conservation violation, which is under investigation by Finnish police. This summer, the forestry corporation’s wood harvesters were found to be crossing protected conservation areas, causing damage to the habitats of the endangered freshwater pearl mussels.

This month, Stora Enso prepared to sell off approximately 12% of its forest assets in Sweden, which total over 1.4 million hectares. The company implemented a new legal structure for its Swedish forest assets to facilitate the potential sale.