In order to meet the growing demand for paperboard packaging, Stora Enso wants to create a "modern megasite" production. To this end, it is considering converting the idle paper machine at the Oulu mill in Finland into a board production line. The Finnish-Swedish paper group has just launched a feasibility study of this project, in order to inform its decision on whether to invest. The question should be decided by the end of the year.
With this paperboard production line, Stora Enso could produce up to 750,000 tons of folding boxboard (FBB), coated natural kraft (CUK) and linerboard annually. The group is targeting the high-quality, low-carbon footprint packaging segments for frozen and chilled food and beverages, as well as non-food applications such as pharmaceuticals and cosmetics.
"This investment would meet the strong customer demand to replace plastic in packaging, says Hannu Kasurinen, Executive Vice President of the Packaging Materials Division. During the study, we will evaluate the profitability of the potential conversion and how to optimize current production synergies to create a modern mega-site in Oulu."
With the machine running at full capacity, the group's sales of 10.2 billion euros in 2021 should be increased by 800 million. The cost of the investment is estimated at between 900 and 1,000 million euros, spread over the period 2023-2026.
In addition to the conversion of the old paper machine and sheet manufacturing facility, the investment would include work on the wood handling, bleached chemi-thermomechanical pulp mill (BCTP), biomass boiler and effluent treatment plant.
The increase in pulpwood consumption in Oulu would be about 1 million m3 , using the volumes released after the closure of the Veitsiluoto site . 150 to 200 people would be hired, particularly in logistics and maintenance.
