Stora Enso Commits €350 Million Investment in Oulu Fine Paper Mill Conversion

SEATTLE (Scrap Monster): Stora Enso announced its decision to cease CWF paper production at its Oula, Finland fine paper mill. The fine paper mill will now be converted into a kraftliner mill. The company plans to invest approximately €350 million over the forthcoming years towards this conversion.

According to company press release, the decision follows detailed analysis of the feasibility study report. The mill’s pulp mill and drying machine will be modified to produce unbleached brown pulp. The PM 7 would be converted to produce high-quality white- and brown-top kraftliner from virgin fibre. Upon completion, the mill facility will have annual production capacity of 450,000 tonnes. The mill will employ around 180 people. The press release further states that PM 6 and the sheeting plant will be permanently closed.

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Both the machines will cease to produce woodfree coated paper by September 2020. The conversion of PM 7 is expected to take approximately three months, which means that production ramp up at the facility may be achieved by end-2020.

The conversion of the Oulu mill into packaging board production was necessary to improve the company’s profitability. It expects pre-tax profit margin of the mill to improve significantly by 15-20%, upon kraftliner machine achieving its full capacity. Also, the conversion will help Stora Enso to further consolidate its position in the growing packaging business by offering high-quality, innovative kraftliner products.

The mill currently employs nearly 400 people.