Stora Enso 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 construction is expected to start by the end of Q4 2017, while 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. The new mill 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.
Jari Suominen, Executive Vice President, Stora Enso’s Wood Products division, commented:
“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.”
The investment is subject to receipt of final regulatory permits and approvals.
About Stora Enso:
The company is the global company operating in segments of the paper, biomaterials, wood products and packaging industry. The company has annual production capacity of 5.4 million tonnes of chemical pulp, 11.7 million tonnes of paper and board, 1.3 billion square metres of corrugated packaging and 5.6 million cubic metres of sawn wood products, including 2.9 million cubic metres of value-added products. Its sales in 2015 totaled EUR 10 billion.The Group has some 26 000 employees in more than 35 countries worldwide. It is a publicly traded company listed in Helsinki and Stockholm.