Stora Enso is continuing to expand in solid biofuels by investing EUR 10 million in starting pellet production at Imavere Sawmill in Estonia. The pellet plant project will commence in the fourth quarter of 2010 and is expected to be completed in the fourth quarter of 2011.

“This investment is part of our strategy to grow in solid biofuels with the aim of becoming the leading integrated supplier of pellets in Northern Europe. With this investment we are targeting industrial and residential customers through our already established distribution and marketing channels, for example in Sweden, which is the largest pellet market in Europe. Imavere is also very well located to start serving the pellet market in southern Finland,” says Hannu Kasurinen, EVP, Stora Enso Wood Products.

The annual capacity of the plant will be 100 000 tonnes of pellets. The pellet production will be fully self-sufficient in raw material and will utilise by-products from the sawmill and further processing operations.

“Imavere is one of our core sawmill sites, with a strong business concept and good basis for future development. Through this investment we will further enhance the sawmill's long-term competitiveness,” says Hannu Kasurinen.

The annual capacity of Imavere Sawmill is 400 000 m3 of sawnwood, joinery components and glue-laminated beams. Stora Enso Wood Products already produces pellets at four sites in Sweden and Russia with total annual capacity 310 000 tonnes.

For further information, please contact:
Hannu Kasurinen, EVP, Stora Enso Wood Products, tel. +358 2046 21222
Matti Mikkola, SVP, Solid biofuels, Stora Enso Wood Products, tel. +358 2046 21710
Päivi Kauhanen, Director, Communications, tel. +358 50 598 9560
Ulla Paajanen-Sainio, Head of Investor Relations, tel. +358 2046 21242