Stora Enso is investing EUR 43 million in a new production line for wooden building elements located in Varkaus, Finland. Sources: Timberbiz, Global News Wire
The investment is based on peeling technology, which will further enhance Stora Enso’s position as a global provider of high quality engineered wooden elements.
The new products complement the existing product portfolio.
Production is scheduled to begin in the second quarter of 2016.
The estimated yearly capacity of the production line will be around 100 000 m3.
The investment is expected to generate annual sales of EUR 50 million when run at full capacity and over time significantly exceed Stora Enso’s ROCE target of 13%.
“This investment is part of Stora Enso’s transformation to a customer-focused renewable materials company. With this investment we will be able to meet growing urban construction needs, serve new geographic areas and markets and offer our customers a wider range of wood product solutions,” said Jari Suominen, EVP head of Stora Enso’s wood products.
In Varkaus, 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.
The operational model at the Varkaus sawmill will be reviewed in connection with the production start-up.
The estimated total employment impact for the Varkaus region is 150 FTEs.
