Stora Enso to Install New Containerboard Machine at Ostroleka Mill in Poland

Jan. 11, 2011 - Stora Enso said that it will invest EUR 285 million to install a new containerboard machine at its Ostroleka Mill in Poland.

The new machine will have a production capacity of 455,000 tonnes per year of lightweight containerboard and use recycled fiber as a raw material.

Stora Enso expects the project to be completed in the first quarter of 2013.

In conjunction with the start-up of the new machine, Stora Enso plans to shut down PM 2, an 85,000 tpy containerboard machine 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," said Jouko Karvinen, CEO of Stora Enso.

Mats Nordlander, executive vice president, Packaging Business Area, added, "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.

"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 it will also clearly improve the cost competitiveness of Stora Enso's Industrial Packaging segment."

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.

SOURCE: Stora Enso