Helsinki, Finland 03 July 2017 -- Stora Enso has decided to invest EUR 45 million in a new production unit for cross laminated timber (CLT) in connection with its Gruvön Mill in Sweden. The investment will further enhance Stora Enso's position as a global provider of high quality engineered wooden elements and as a market leader in CLT.
The production is scheduled to begin during the first quarter of 2019. The estimated yearly capacity of the production line will be approximately 100 000 m³ after ramp-up, subject to required approvals being in place. The investment is expected to generate annual sales of approximately EUR 50 million when run at full capacity and over time significantly exceed the Wood Products division's profitability target, operational return on operating capital (ROOC) of 18%.
The green field investment is made as an extension of the existing Gruvön sawmill. The construction is expected to start by the end of Q4 2017. Stora Enso invests in advanced technology, which together with completely integrated production, will ensure cost efficient solutions for customers and premium products to the market.
"This investment supports our strategy to grow in the construction industry and increase the use of wood as a building material. We target to increase our cost competitive CLT capacity located favourably in relation to target markets. We see extensive potential for CLT in the Nordic market. The demand for this premium product, our well proven concepts, and massive building components and systems is constantly increasing," says Jari Suominen, Executive Vice President, Stora Enso's Wood Products division.
In Gruvön, 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. This investment is not anticipated to impact current operational level at the existing mill. The estimated total employment impact for the region is estimated to be 60 FTEs.
The investment is subject to receipt of final regulatory permits and approvals.
Stora Enso is a leading provider of renewable solutions in packaging, biomaterials, wooden constructions and paper on global markets. Our aim is to replace fossil-based materials by innovating and developing new products and services based on wood and other renewable materials. We employ some 25 000 people in more than 35 countries, and our sales in 2016 were EUR 9.8 billion. Stora Enso shares are listed on Nasdaq Helsinki (STEAV, STERV) and Nasdaq Stockholm (STE A, STE R). In addition, the shares are traded in the USA as ADRs (SEOAY). storaenso.com