Stora Enso acquires Finnish sawmill company to secure wood supply

Stora Enso has completed the acquisition of the Finnish sawmill company Junnikkala Oy, with a total enterprise transaction value of €137 million (US$155 million).

The acquisition aims to boost cost-efficient wood supply at its Oulu site in Finland, where a new packaging board machine recently started production. 

The consumer board line is estimated to have an annual capacity of 750,000 tons and is expected to break even by the end of 2025, reaching full capacity in 2027. 

Plans to acquire Junnikkala Oy were announced in October 2024. 

The paper mill company expects the acquisition to generate synergies of approximately €15 million (US$17 million) annually once Junnikkala’s new sawmill in Oulu is fully operational. The Junnikkala sawmill products are said to complement Stora Enso’s wood products portfolio.

Stora Enso’s annual wood procurement in Finland will increase by approximately 1.7 million cubic meters, and the group’s total sawmilling capacity will grow by 700,000 cubic meters.

In 2024, Stora Enso had approximately 19,000 employees with group sales amounting to €9 billion (US$10 billion).