Stora Enso Makes EUR 110 Million Transformation Investment in Conversion of Varkaus Mill Fine Paper Machine to Light-Weight C...
25 Abril 2014 - 3:08AM
Stora Enso will invest approximately EUR 110 million in converting
the Varkaus Mill fine paper machine in Finland to produce
virgin-fibre-based containerboard. Most of the cost is due to the
conversion work required on the paper machine and in the pulp mill.
"Utilising existing assets within Stora Enso and modifying them to
a new product line is part of Stora Enso's transformation to a
value-creating renewable materials company focusing on growth
markets," says Stora Enso CEO Jouko Karvinen.
"Varkaus is an ideal mill for this kind of conversion. It has an
integrated pulp mill, a power plant and a suitable paper machine.
In addition, the mill is well located from a raw material supply
point of view and it has the necessary infrastructure and
competence to run the project successfully," Jouko Karvinen
notes.
Renewable-fibre-based packaging has good growth potential in
Europe and globally, and Stora Enso sees an opportunity to benefit
from that growth by investing in competitive kraftliner capacity at
Varkaus. Through the machine conversion, Stora Enso is taking
advantage of the combination of two market forces: the decreasing
global market for paper but increasing global market for renewable
packaging board.
The conversion will decrease Printing and Reading annual sales
by EUR 140 million from 2016 onward and increase Renewable
Packaging sales by EUR 280 million when the machine is running on
full capacity. The targeted EBITDA margin to the machine conversion
in full run is above 15% provided that the current market
conditions prevail.
The conversion work is expected to be undertaken mainly during
autumn 2015 and the containerboard machine is scheduled to start up
during the fourth quarter of 2015. The current 280 000 tonnes per
year uncoated fine paper machine is planned to cease production by
the end of August 2015. Following the conversion into a linerboard
machine, Varkaus Mill's capacity will be about 390 000 tonnes per
year of kraftliner and 310 000 tonnes of brown unbleached kraft
pulp. Most of the board production is planned to be sold
externally.
Varkaus Mill will produce office paper grades until the end of
August 2015. Stora Enso will continue serving its office paper
customers from the two other uncoated fine paper units, Veitsiluoto
Mill in Finland and Nymolla Mill in Sweden.
For further information, please contact: Hannu
Alalauri, SVP Packaging Solutions, Stora Enso Renewable Packaging,
tel. +358 2046 21228 Ulla Paajanen-Sainio, SVP Investor Relations,
tel. +358 40 763 8767 Tommy Borglund, SVP Communications, Stora
Enso Renewable Packaging, tel. +46 1046 71709 Ulrika Lilja, SVP
Communications, Stora Enso Printing and Living, tel. +46 1046 71668
www.storaenso.com www.storaenso.com/investors 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
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