Displaying items by tag: Stora Enso

Stora Enso and its partner Alucha Recycling Technologies have been granted the ‘Best of the Best’ LIFE Environment Project award for 2010. This award is granted by the European Union to recognise projects that have a positive impact on the environment. Stora Enso and Alucha Recycling Technologies received the award for developing and investing in innovative recycling technology in Stora Enso’s Barcelona Mill. The new technology separates plastic-aluminium laminate from recovered beverage cartons by a process that enables both fibre and aluminium to be fully reused, and the plastic to be utilised to generate energy in the mill.

Selections of favourable projects were made by the representatives of EU Member States working in co-operation with the European Commission’s DG Environment LIFE Unit to produce a shortlist of projects for the award.

“Fibre-based beverage cartons are a great packaging product because it is a natural material with a low carbon footprint that comes from renewable resources and it is highly recyclable,” explains Mats Nordlander, Executive Vice President at Stora Enso Packaging. “We are continuously working to enhance the recycling of our products, and look for innovative ways to reduce our environmental footprint. This is why we are especially proud of this recognition from the EU.”

Stora Enso’s Barcelona Mill receives used milk and juice cartons from Spain, France, Portugal and the UK which are used as raw material for the production of white lined chipboard, a carton grade based on recovered fibre used in various packaging applications.

Metso will supply new Metso IQ quality control systems to two supercalenders on paper production line 6 at Stora Enso’s fine paper mill in Oulu. Both systems have optical caliper sensors with associated paper profile controls.

Metso is globally a strong QCS supplier and a market leader of optical online caliper sensors for paper industry.

Stora Enso is an integrated paper, packaging and forest products company producing newsprint, magazine paper, fine paper, consumer board, industrial packaging and wood products. The Oulu Mill, in Finland, is one of the world’s largest and most modern facilities manufacturing art quality coated woodfree papers.

Microfibrillated cellulose (MFC) pre-commercial plant offers lighter and stronger materials for renewable packaging and potential future applications

Stora Enso is taking a significant step forward in renewable materials innovation by building a pre-commercial plant at Imatra in Finland for the production of microfibrillated cellulose. The new type of renewable material will be used in existing and new unique fibre-based paper and board products, barrier materials, and other potential future applications.

“The MFC pre-commercial plant is another proof point of rethinking within Stora Enso. It is not only an example of pathfinding innovation together with institutions and universities for the benefit of consumers and even the planet; it is also a proof point of Stora Enso’s commitment to accelerating the development of the next generation of renewable materials. With MFC we will be able to develop lighter, stronger renewable packaging materials, a lot more with a lot less. The pre-commercial plant will put us into a unique position to accelerate customer-driven innovation and product concepts from this technology. In the longer term, as we continue to renew and challenge ourselves, the applications of this renewable material may well extend to replacing today’s fossil-based materials such as plastics and some speciality chemicals, and aluminium – revolution instead of evolution,” says Stora Enso CEO Jouko Karvinen.

The microfibrillated cellulose technology project, including the Imatra pre-commercial plant, is estimated to total approximately EUR 10 million. The plant is scheduled to start production by the end of 2011.

Stora Enso’s Fine Paper Business Area is re-evaluating its working methods and building a new business model to increase cost competitiveness. According to the plans, Stora Enso would restructure operations at Nymölla Mill in Sweden. At Uetersen Mill in Germany the plan is to restructure operations more towards Speciality Papers and at Oulu Mill in Finland, together with the sheeting plants in Belgium and the United Kingdom, find the most efficient way to utilise the converting capacity and streamline operations.

“The plans announced today would make Stora Enso Fine Paper more flexible and cost efficient, and so better able to meet customer and market expectations. Fine paper demand is still clearly below pre-crisis levels, and there are no signs of sustained recovery. We have been successfully remodelling our operations during the past few years, and now we plan to continue on the chosen path of improving our existing businesses. We are comparing the best practices at all our mills so we can continuously adopt the most efficient ways of working. Similarly, we need to question our way of running the operations. These plans are part of rethinking in Stora Enso, but of course rethink means much more for us, such as new products and services, new solutions with our customers – better solutions for the future,” says Hannu Alalauri, EVP, Fine Paper Business Area.

Stora Enso Fine Paper plans to reduce annual costs by approximately EUR 20 million, starting during 2011 with all actions to be completed by the end of the second quarter of 2012. The proposed restructuring measures would affect altogether up to 285 employees in Finland, Sweden, Germany, Belgium and the United Kingdom. Stora Enso will record a cash provision of approximately EUR 16 million as a non-recurring item in its second quarter of 2011 operating profit. The plans would not affect the Business Area’s paper production capacities.

The outcome of the plans will depend on the result of the local co-determination procedures. As before, Stora Enso would make every effort in co-operation with local communities to help the affected personnel find new employment opportunities, and all job openings in other Stora Enso units would be available to those affected.

Stora Enso has signed a loan facility agreement with the International Finance Corporation (IFC) to extend the maturity of USD 128 million in syndicated loans under its existing facility with IFC. IFC is a member of the World Bank Group focussed on private sector development in emerging markets. The extension prolongs the maturity by three years to June 2014. The loan will be used to finance Stora Enso’s current and future investments in China.

The participating international commercial banks are Crédit Agricole Corporate & Investment Bank, Handelsbanken, HSBC, Nordea, SEB and The Royal Bank of Scotland. The initial loan facility for China was signed between Stora Enso and IFC in June 2005. The amount was increased to USD 300 million in June 2006, of which USD 128 million is now extended.

In line with its growth markets strategy, Stora Enso is focusing on profitable expansion in China by prioritising local sustainable supplies of fibre and by targeting investments in growth markets and selected product segments.

“We have a long relationship with IFC, which has been our primary strategic financing partner in China. We are pleased to note that investors such as IFC appreciate our sustainability approach. They have also provided important guidance on how to enhance the sustainability of our operations,” says Stora Enso CFO Markus Rauramo.

Stora Enso has appointed Juan Carlos Bueno, 42, to head the Group’s operations in Latin America and as a member of the Group Executive Team as of 1 April 2011.

Juan Carlos Bueno is a native Colombian and has worked for the global science company DuPont in various positions since 1992. For the past several years he has been the Vice President leading the DuPont Agricultural Products business in Brazil. He has some twenty years of experience from finance, sales, marketing and general business management.

“We welcome Juan Carlos Bueno to the Stora Enso team with high expectations. He will bring us a combination of solid business experience and totally new insights into Latin America. Throughout his career Juan Carlos has demonstrated strong strategic and operational capabilities in the changing economic and market conditions not only in Latin America, but also in Europe and North America,” says Stora Enso CEO Jouko Karvinen.

Nils Grafström, 64, after a long successful career first in Stora, then Stora Enso, and for the past eight years as head of Stora Enso Latin America, will retire as previously planned in June 2011.

Stora Enso is planning to permanently close down Kopparfors Sawmill in Sweden by the end of 2011 due to several years of losses and no feasible options for improvement. The plan also includes closing down the pellet mill.

“Despite several years of focused efforts to turn around the losses of Kopparfors Sawmill, we have been unable to achieve the improvements needed in efficiency and profitability. The slowness of the recovery in markets combined with poor operational efficiency, high raw material costs, unfavourable exchange rates and lack of cost flexibility have kept Kopparfors loss-making. In our analysis, even in the most optimistic scenario, we can see potential for only marginal improvement,” says Hannu Kasurinen, EVP, Stora Enso Wood Products.

“This is of course a difficult message for our employees in Kopparfors. The closure would affect not only the people who work at Kopparfors Sawmill and the pellet mill, but also many people in the community. We will do everything we can in close co-operation with the local community and authorities to help every employee affected by the plans to find re-employment options.

“We are investigating alternatives for supplying our key customers and plan to utilise some of the sawmill and pellet mill machinery at other Stora Enso locations. The planned mill closure would not affect wood purchasing in Sweden.”

The Group will record a one-time non-cash fixed asset and working capital write-down of approximately EUR 20 million and in addition a restructuring provision with a cash impact of approximately EUR 9 million as non-recurring items in its first quarter 2011 operating profit. Based on 2010 annual figures the closure would reduce Stora Enso’s annual sales by approximately EUR 65 million but have no material impact on the Group’s annual operating profit. The planned closure will have a positive tax impact of approximately EUR 8 million in the first quarter of 2011.

Kopparfors Sawmill has an annual production capacity of 310 000 m³ of sawnwood, of which 150 000 m³ can be further processed by planing. The pellet mill has an annual capacity of 160 000 tonnes. Kopparfors has 110 employees.

The measures are subject to negotiations under the Swedish Co-determination Act (MBL).

The Group also included in the list of the 100 most sustainable companies in the world

Stora Enso has been named by the Ethisphere Institute as one of the World’s Most Ethical Companies for 2011. Ethisphere’s WME list recognises companies’ ethical leadership, compliance practices and corporate social responsibility. Stora Enso has now been selected for the list for the fourth time running, out of a record number of nominee companies.

“As companies strive to maintain a competitive advantage, good ethics translate into better business, and better business means better bottom lines. Stora Enso recognises the important role that principled practices play in brand reputation, which ultimately is the most valuable asset for a corporation,” said Alex Brigham, Executive Director of the Ethisphere Institute. “Each year the competition gets more intense for the World’s Most Ethical Companies, and this year was no exception with a record number of organisations vying for this distinguished honour. Ethisphere congratulates Stora Enso on being one of the World’s Most Ethical Companies for 2011.”

The WME ranking process involves reviewing ethical codes, litigations and regulatory infraction histories; evaluating investments in innovation and sustainable business practices; assessing activities designed to improve corporate citizenship; and studying nominations made by senior executives, industry peers, suppliers and customers.

Ethisphere has been working for five years as a think-tank dedicated to the creation, advancement and sharing of best practices in business ethics, corporate social responsibility, anti-corruption and sustainability. Other listed companies include American Express, eBay, Ford Motor Company, Adidas, Starbucks, PepsiCo and the Xerox Corporation.

Read more about the methodology behind this scheme and view the complete list of the World’s Most Ethical Companies for 2011 at http://ethisphere.com/worlds-most-ethical-companies-rankings/.

Stora Enso’s responsibility work widely recognised in 2011

Stora Enso’s corporate responsibility work has already received several external recognitions this year. In February Stora Enso was selected for the SAM Sustainability Yearbook, the most comprehensive global publication on corporate sustainability. On the basis of our environmental, social and financial performance, Stora Enso has also been included in the Global 100 list of the 100 most sustainable companies in the world, announced at the 2011 World Economic Forum in Davos, Switzerland.

Stora Enso’s and Arauco’s joint-venture company Montes del Plata will build a new state-of-the-art 1.3 million tonnes per year pulp mill at Punta Pereira, in the department of Colonia, Uruguay. The total investment is estimated to be approximately USD 1.9 billion (EUR 1.4 billion). Each of the joint-venture shareholders has a 50% stake in the mill’s equity and will be entitled to half of its output. The project will be financed about 40% through equity and about 60% through loans raised by Montes del Plata. Stora Enso is consolidating its 50% share with the equity method.

The project comprises a state-of-the-art with Best Available Techniques pulp mill, a deepwater port and a power generating unit based on renewable resources. The new mill is expected to be operational by the end of the first quarter of 2013.

The eucalyptus pulpwood will be sourced essentially from Montes del Plata’s own plantations. The company currently owns 254 000 hectares of forestland in Uruguay, of which 138 000 hectares are planted, about 100 000 hectares are protected and 16 000 hectares are suitable for planting. The project will also be of value for the economic and social development of Colonia and Conchillas, where the company is committed to an environmental performance of excellence and to working with the local authorities and the community.

“Low cost plantation-based pulp is one of the cornerstones of our strategy. Our investment is a concrete step in implementing this strategy to build the future of our Group. The Uruguayan government authorities both nationally and locally have been a welcoming supporter to Montes del Plata. We look forward to implementing the project in close co-operation with them. We are also proud to invest together with a great partner like Arauco and have a joint vision of building something in Uruguay that will be a role model for the world,” says Jouko Karvinen, CEO of Stora Enso.

“We are extremely happy to see this investment becoming a reality. It is the result of hard work by the team of Montes del Plata, strong support from the shareholders Stora Enso and Arauco, and seamless co-operation between the company and the Uruguayan and Colonia authorities. A new stage is beginning in which we will strive to build a project of excellence,” says Erwin Kaufmann, CEO of Montes del Plata.

The new pulp mill will be the largest-ever privately executed investment in Uruguay. The construction and operation of the pulp mill will have significant economic and social impacts in the country. An average of 3 200 and a peak of 6 000 workers will be employed during construction and about 500 people is expected to work at the mill once it is operational. The mill is forecast to have a positive impact on Uruguay’s GDP of 0.8% during construction and 2% when it is operating.

Stora Enso is strengthening its leading position in corrugated packaging in the growth markets of Central and Eastern Europe by renewing containerboard capacity at its Ostrołęka Mill in Poland. The EUR 285 million investment project is scheduled to be completed in the first quarter of 2013. The new containerboard machine with greater capacity and a modern product will not only renew the product offering, it will also improve Stora Enso’s overall cost position through efficient internal supply of light-weight containerboard made from recycled fibre. In conjunction with the start-up, Stora Enso plans to shut down containerboard machine PM 2 at Ostrołęka 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. The investment at Ostrołęka is another concrete step in building sustainable and profitable growth for the Group,” says Jouko Karvinen, CEO of Stora Enso.

“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,” says Mats Nordlander, Executive Vice President, Packaging Business Area.

“Recycled fibre is the dominant raw material for corrugated packaging and continues to win share from virgin fibres. 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 itwill also clearly improve the cost competitiveness of Stora Enso’s Industrial Packaging segment. Stora Enso’s integrated RCP collection network in Poland, the new efficient power plant just completed and this new state-of-the-art containerboard machine will make Ostrołęka the benchmark in both cost and product offering in Europe,” Nordlander explains.

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 Ostrołęka Mill, which is part of Stora Enso’s Industrial Packaging segment, is currently 270 000 tonnes of containerboard and kraft paper. The annual capacity of the new containerboard machine will be 455 000 tonnes and the annual capacity of PM 2 is currently 85 000 tonnes of containerboard.

For further information, please contact:

Mats Nordlander, EVP, Packaging Business Area, tel. +46 1046 72703
Ulla Paajanen-Sainio, Head of Investor Relations, tel. +358 2046 21242
Lauri Peltola, Head of Group Communications and Global Responsibility, tel. +358 2046 21380