HELSINKI, Finland, Jan. 11, 2011 (GLOBE NEWSWIRE) -- Stora Enso is strengthening its leading position in corrugated packaging in the growth markets of Central and Eastern Europe by renewing containerboard capacity at its Ostroleka Mill in Poland. The EUR 285 million investment project is scheduled to be completed in the first quarter of 2013. The new containerboard machine with greater capacity and a modern product will not only renew the product offering, it will also improve Stora Enso's overall cost position through efficient internal supply of light-weight containerboard made from recycled fibre. In conjunction with the start-up, Stora Enso plans to shut down containerboard machine PM 2 at Ostroleka Mill.
"Strengthening our competitive position in corrugated packaging in the growing markets of Central and Eastern Europe is at the core of our growth strategy. The investment at Ostroleka is another concrete step in building sustainable and profitable growth for the Group," says Jouko Karvinen, CEO of Stora Enso.
"Customer demand for modern light-weight corrugated packaging is increasing rapidly. This investment supports Stora Enso's objective of offering demanding customers new packaging solutions," says Mats Nordlander, Executive Vice President, Packaging Business Area.
"Recycled fibre is the dominant raw material for corrugated packaging and continues to win share from virgin fibres. The markets for transport packaging in Central and Eastern Europe have grown and will continue to grow by over 5% per year. This investment will support our growth and increase Stora Enso's self-sufficiency in containerboards from 35% to 60% and itwill also clearly improve the cost competitiveness of Stora Enso's Industrial Packaging segment. Stora Enso's integrated RCP collection network in Poland, the new efficient power plant just completed and this new state-of-the-art containerboard machine will make Ostroleka the benchmark in both cost and product offering in Europe," Nordlander explains.
Stora Enso's corrugated packaging product portfolio includes transport and consumer packaging, packaging design and machinery. The Group's twenty corrugated packaging plants in Finland, Sweden, Russia, Poland, Hungary and the Baltic States with total capacity 1.3 billion m2 of corrugating packaging used some 560 000 tonnes of containerboard in 2010.
The annual capacity of Ostroleka Mill, which is part of Stora Enso's Industrial Packaging segment, is currently 270 000 tonnes of containerboard and kraft paper. The annual capacity of the new containerboard machine will be 455 000 tonnes and the annual capacity of PM 2 is currently 85 000 tonnes of containerboard.
For further information, please contact:
Mats Nordlander, EVP, Packaging Business Area, tel. +46 1046 72703
Ulla Paajanen-Sainio, Head of Investor Relations, tel. +358 2046 21242
Lauri Peltola, Head of Group Communications and Global Responsibility, tel. +358 2046 21380
PRESS CONFERENCE IN STOCKHOLM
The conference will be held in English. Questions can be addressed to Jouko Karvinen and Mats Nordlander after the presentation.
To attend the press conference on location in Stockholm:
Kindly register your intention to participate in this event by e-mail to jonas.nordlund@storaenso.com.
ANALYST CONFERENCE CALL
EVP Mats Nordlander and Head of Investor Relations Ulla Paajanen-Sainio will be hosting a combined conference call and webcast today at 11.00 Swedish time (10.00 GMT, 12.00 EET).
If you wish to participate, please dial:
The live webcast may be accessed at
Stora Enso is a global paper, packaging and wood products company producing newsprint and book paper, magazine paper, fine paper, consumer board, industrial packaging and wood products. The Group is the world leader in forest industry sustainability. We offer our customers solutions based on renewable raw materials. Our products provide a climate-friendly alternative to many non-renewable materials, and have a smaller carbon footprint. Stora Enso is listed in the Dow Jones Sustainability Index and the FTSE4Good Index. Stora Enso employs some 27 000 people worldwide, and our sales in 2009 amounted to EUR 8.9 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.