Stora Enso has entered into an agreement to acquire 100% of the Finnish sawmill company Junnikkala Oy. This acquisition aims to secure a cost-efficient wood supply to Stora Enso’s packaging board site in Oulu, Finland, and to support Stora Enso’s wood products business with new production assets. Source: Timberbiz
The total enterprise value (EV) for the transaction is up to EUR 137 million, a significant part of it being contingent upon achieving specific production milestones. The transaction is subject to customary closing conditions including regulatory approvals and is expected to close in the first half of 2025.
Junnikkala Oy is a Finnish producer of sawn timber and processed wood products for domestic and export markets. It operates three sawmills in Finland including its new state-of-the-art sawmill, less than 10 kilometres from the Stora Enso Oulu site.
The acquired sawmills will create synergies with the integrated board site in Oulu through long-term supply of raw materials such as wood chips, pulpwood and internally sourced biomass going from the sawmills to the Oulu site.
“We are preparing for the start-up of our new converted packaging board line in Oulu and this acquisition will establish a solid foundation for our wood procurement. It will also further enhance operational efficiency and optimise the Oulu production site and sawmills as an integrated unit, while also strengthening our wood products offering,” said Hans Sohlström, Stora Enso’s President and CEO.
The transaction will strengthen the Group’s wood supply operations and reinforce its position in sawlog and pulpwood sourcing in the Baltic Rim wood market. Stora Enso’s annual wood procurement in Finland will hence increase by approximately 1.7 million m³ and the Group’s total saw-milling capacity by approximately 700,000 m³.
The integration of the value chain will reduce costs and improve resource efficiency. Stora Enso harvesting operations in Finland generate a stable supply of sawlogs, pulpwood and energy wood to the Group’s Finnish production sites.
Through integrated and efficient sawmilling capacity in Finland, Stora Enso can secure a balanced sawlogs and pulpwood supply. Additionally, the sawmills play an important role in increasing the sawmill by-product supply for pulp and energy use for Stora Enso’s Oulu site.
Junnikkala’s sawmill operations will be fully incorporated into Stora Enso’s Wood Products division and the wood procurement activities will be integrated into the Forest division.
The acquisition is expected to gradually generate synergies of approximately EUR 15 million annually once the new sawmill in Oulu is fully operational and will have no operational impact on Stora Enso’s current sawmills.
Junnikkala’s sales in 2023 were EUR 115 million (EUR 141 million in 2022). The company has approximately 230 employees all of whom will transfer to Stora Enso.
