Helsinki, Finland, Feb. 4, 2015 (GLOBE NEWSWIRE) -- Stora Enso is investing EUR 43 million in a new production line for wooden building elements located in Varkaus, Finland. The investment is based on peeling technology which will further enhance Stora Enso's position as a global provider of high quality engineered wooden elements. The new products complement the existing product portfolio.
Production is scheduled to begin in the second quarter of 2016. The estimated yearly capacity of the production line will be around 100 000 m3. The investment is expected to generate annual sales of EUR 50 million when run at full capacity and over time significantly exceed Stora Enso's ROCE target of 13%.
"This investment is part of Stora Enso's transformation to a customer-focused renewable materials company. With this investment we will be able to meet growing urban construction needs, serve new geographic areas and markets and offer our customers a wider range of wood product solutions," says Jari Suominen, EVP, Head of Stora Enso's Wood Products.
In Varkaus, Stora Enso can take advantage of and make best use of the premises available, an industrial infrastructure for efficient logistics, the local supply of raw material to optimise wood sourcing and highly competent workforce. The operational model at the Varkaus sawmill will be reviewed in connection with the production start-up. The estimated total employment impact for the Varkaus region is 150 FTEs.
For further information, please contact:
Ulrika Lilja, EVP, Global Communications, tel. +46 1046 71668
Cathrine Wallenius, SVP Communications, Stora Enso Wood Products, tel. +46 70 209 2429
Ulla Paajanen-Sainio, SVP, Investor Relations, tel. +358 2046 21242
Stora Enso is the global rethinker of the paper, biomaterials, wood products and packaging industry. We always rethink the old and expand to the new to offer our customers innovative solutions based on renewable materials. Stora Enso employs some 29 000 people worldwide, and our sales in 2013 amounted to EUR 10.6 billion. Stora Enso shares are listed on NASDAQ OMX Helsinki (STEAV, STERV) and Stockholm (STE A, STE R). In addition, the shares are traded in the USA as ADRs (SEOAY) in the International OTCQX over-the-counter market.
STORA ENSO OYJ
Source:Stora Enso Oyj