Stora Enso accelerates renewable packaging sector with multi-billion euro investment

Stora Enso has inaugurated Europe’s largest and most modern consumer packaging board production line in Oulu, Finland.

The Oulu unit serves the growing demand for renewable packaging globally and contributes to the transition to a circular bioeconomy. It is also said to support Finland’s competitiveness and increases exports with products of higher added value. 

Stora Enso has invested €1.1 billion (US$1.3 billion) in the now inaugurated production line together with other developments on the site area, amounting to a €1.7 billion (US$1.9 billion) investment in the Oulu mill between 2019–2025. 

Hans Sohlström, Stora Enso’s president and CEO, says: “Consumer packaging made from wood fibers has great potential to replace plastic packaging and our materials are designed for existing recycling streams.” 

“The nearly carbon-neutral production site in Oulu is a prime example of an investment in bioeconomy, and it concretely contributes to the transition from fossil materials to renewable and recyclable packaging.”

Boosting food-contact safe exports

The site can now convert former paper machines into board lines utilizing the latest technology, while the environmental impact has been reduced by cutting fossil carbon dioxide emissions by 90%. 

Chilled food trays are part of Oulu’s product portfolio.

The mill produces folding boxboard, kraftliners, paper bag material, and unbleached softwood pulp. Board materials are food-contact safe, and almost all of the Oulu mill’s production is said to be exported. 

The Oulu mill’s new production line utilises Stora Enso’s patented FiberLight Tec fiber processing technology. Technology enables the production of lighter, yet robust and durable boards. End products include, for example, different cardboard packaging for frozen, cold, and dry food products, medicines, and beverage multipacks. 

Matti Lielahti, head at the Stora Enso Oulu Business Unit, adds: “Our folding box board can be up to a third lighter than traditional boards. The material is efficient and durable, and helps our customers to reduce the consumption of packaging material and at the same time reduce their transport emissions. This means they have very high added value.”

“We mainly use pulpwood purchased from private forest owners in Finland, small-diameter wood, and wood chips from our sawmills for board production. We also utilize bark and sawdust for energy production. The bioenergy produced in the mill is used for district heating in Oulu.”

Elevating local economy

Stora Enso’s Oulu site employs more than 900 people directly and many more in the entire supply chain, wood transport, logistics, maintenance, and service providers in the area. 

“Stora Enso’s billion-euro investment in Oulu will improve export operations, the vitality and competitiveness of the region, and also of Northern Finland, and bring more permanent jobs. We are pleased to actively contribute to the implementation of significant green transition industrial policy investments in accordance with our growth strategy,” says Ari Alatossava, Mayor of Oulu. 

Stora Enso’s new consumer packaging board line in Oulu is expected to reach its full capacity of 750,000 metric tons by 2027, when its annual sales are anticipated to be approximately €800 million (US$934 million).