Stora Enso boosts fiber capacity with consumer board line as renewable packaging demand grows
16 Feb 2023 --- Stora Enso is partnering with Afry on an engineering assignment to convert a decommissioned paper machine into a high-volume consumer board production line at the company’s mill in Oulu, Finland.
Stora Enso is investing approximately €1 billion (US$1.07 billion) to boost its total annual capacity of folding box board (FBB) and coated unbleached kraft (CUK) to 750,000 metric tons. The converted consumer board machine is estimated to begin production in early 2025.
“Afry has extensive experience in engineering and implementing large-scale conversion projects, which will support Stora Enso in demanding time scheduling and project management,” says Kalle Rasinmäki, Afry’s head of process industries in Finland.
The assignment includes engineering services for the Balance of Plant, a new wood handling line, a new thermomechanical pulp line and evaporation plants. It furthermore entails modifications to the existing recovery boiler and causticizing, a new biofuel boiler and fuel handling, a new non-condensable gas boiler and the rebuild of on-site storage and conversion.
Afry, a European leader in engineering, design and advisory services, has co-operated for over six decades with Stora Enso.
Stora Enso is boosting its annual capacity of folding box board and coated unbleached kraft.Fiber-based packaging
Speaking to PackagingInsights, Joao Cordeiro, head of pulp and paper at Afry, explains the process for conversion into a consumer board production line. He says that consumer boards such as FBB and CUK are produced as multilayered structures, containing a blend of different fibers and pulps.
“While significant investments are needed to convert integrated pulp and graphic paper mills into competitive consumer board production, these conversions can provide a viable route to entering and expanding into the world of sustainable packaging materials,” Cordeiro underpins.
“The main adaptations to the pulp mills involved the production of multiple types of pulps: typically, the middle layer of such boards require thermomechanical pulps while the outside layers consist of a combination of unbleached and bleached kraft pulps, made of both softwood and hardwood species.”
Consumer boards also need a board machine that can produce and form many layers so the main adaptations to the graphic paper machine typically focus on the forming area, the press session and the extension of the drying session.
“High quality consumer boards need to be coated with various materials to provide additional properties such as printability, water resistance and barrier protection. Investments and adaptations to on-line coaters and supporting kitchens are also needed,” Cordeiro continues.
“The overall energy balance of the mill also changes. When converting a graphic paper mill into a consumer board mill major modifications to the energy and chemical recovery departments of the mill are necessary.”
According to Cordeiro at Afry, renewable fiber-based packaging can address concerns relating to dynamic market.
Dynamic market forces
Last year, major paper packaging producers including Stora Enso and forestry standards authorities froze their operations in Russia and Belarus in a show of protest against the invasion of Ukraine. Stora Enso divested its Lukhovitsy, Arzamas and Balabanovo packaging plants in Russia to local management.
“The global demand for paper and board is very dynamic as different applications face distinct driving forces,” Cordeiro tells us.
“On one hand graphic papers have been facing strong competition from digital media often driven by the wider reach, greater interactivity and real-time content update. On the other hand, with the increasing awareness about environmental issues, consumers and businesses are looking for more sustainable solutions that can reduce the impact of packaging waste on the environment.”
Cordeiro adds that the industry is quickly adapting to these opposite dynamic forces. Large integrated graphic paper mills, where both pulp and papers are produced, are suitable platforms to produce packaging materials after certain adaptations.
“Renewable fiber-based packaging, which is made from wood, a biodegradable material, can help address these concerns.”
“Once-in-a-generation shift”
Stora Enso published its 2022 annual report to reveal “an all-time high” financial performance.
Folded box board and coated unbleached kraft are produced as multilayered structures, containing a blend of different fibers and pulps.“Our strong result in 2022 reaffirms our strategic choices and the execution of our initiatives toward a more focused business strategy, with accelerated profitable growth, supported by the long-term sustainability trends,” Annica Bresky, president and CEO at Stora Enso, shares.
“At the beginning of 2023, we took the last steps in our strategic exit from the graphical paper business.”
The company recently divested three out of five of its paper sites and dissolved its Paper division. In December, Stora Enso also announced its intent to divest the packaging material site and local forestry operations in Beihai, China.
“The investment to convert the idle paper machine at our site in Oulu in Finland supports our growth strategy by providing new consumer board volume for growing packaging segments where we already have a leading market position,” Bresky continues.
“We are currently witnessing a once-in-a-generation shift away from single-use plastic packaging to more sustainable options. The increasing demand for hygienic food packaging, on-the-go and related food deliveries and resource-efficient industrial and e-commerce packaging has created a great opportunity for Stora Enso.”
The company details that the rapid growth of the renewable packaging sector continues due to demographic changes and overall long-term economic growth. The increasing focus on environmental sustainability, particularly in the consumer goods industry, contributes to the broader adoption of fiber-based packaging solutions.
By Radhika Sikaria
