Displaying items by tag: Stora Enso

Stora Enso’s ambition is to offer 100% regenerative products and solutions by 2050. By adopting a regenerative stance, Stora Enso is shifting its sustainability goals from minimising negative environmental impact to becoming a net positive¹ contributor within the defined focus areas of climate, circularity and biodiversity by 2050.

Being regenerative means providing renewable and fully circular products and solutions that help reduce climate impact and support biodiversity restoration.

“As a renewable materials company, our core business is about offering solutions to sustainability challenges. To balance staying within planetary boundaries and securing economic and social progress, the world needs a transformation away from fossil dependency and a linear economy. With this commitment Stora Enso aims to be a leading actor in driving the transformation towards a biobased circular economy. We will be transparent with our progress, taking a science-based approach, to offer regenerative solutions that not only mitigate environmental impact, but restore and rebuild,” says Annica Bresky, Stora Enso’s President and CEO.

New sustainability targets

Stora Enso is also committing to new 2030 targets for its key sustainability priorities: climate change, biodiversity and circularity.

With its updated science-based targets, Stora Enso commits to reducing absolute scope 1 and 2² greenhouse gas (GHG) emissions from operations by 50% by 2030 from the 2019 base-year, aligned with the 1.5-degree scenario. Stora Enso also commits to an ambitious target to reduce scope 3² GHG emissions by 50% by 2030 from the 2019 base-year. The science-based targets have been approved by the Science Based Targets initiative, a partnership between CDP, the United Nations Global Compact (UNGC), the World Resources Institute (WRI) and the World Wide Fund for Nature (WWF).

As part of its new ambition, Stora Enso commits to achieving a net-positive impact on biodiversity in its own forests and plantations by 2050 through active biodiversity management. A set of actions towards 2030 has been developed and initiated to improve biodiversity on species, habitat and landscape levels.

“Stora Enso uses its own forest in Sweden as a development platform for enhancing biodiversity. We will, for example, increase the share of broad-leaved trees and the amount of dead wood. Continuous cover forestry will be tested to evaluate its impact on biodiversity and forest growth in areas suitable for this method. Furthermore, Stora Enso will unify and expand performance evaluations that assess the quality of our work in Finland, Sweden, Russia and the Baltics in order to enhance biodiversity,” says Jari Suominen, Executive Vice President, Forest Division at Stora Enso.

Our work will be supported by a science-based monitoring programme and more than 15 indicators tracking progress on the species, habitat and landscape levels. During 2022 Stora Enso will start to share data on its progress through a new online reporting tool and support forest owners with enhanced biodiversity services. As a global renewable materials company, Stora Enso also aims to improve biodiversity globally, even beyond the forest sector, through knowledge sharing and active participation in formulating new policies and standards.

Stora Enso’s circular economy target outlines the commitment to transparent and circular material flows that help minimise waste and combat climate change. The interim targets for this include achieving 100% recyclable products by 2030. Flagship projects focused on infrastructure will help drive recycling at scale. This involves engagement along our value chain and new circular business models.

¹⁾ Net Positive refers to a way of doing business where our products are being recycled, where we remove more CO₂ from the atmosphere than we emit and enhance biodiversity.
²⁾ Scope 1: Direct fossil CO₂e emissions from production. Scope 2: Indirect fossil CO₂e emissions related to purchased electricity and heat. Scope 3: Emissions from other sources along our value chain.

Part of the bioeconomy, Stora Enso is a leading global provider of renewable solutions in packaging, biomaterials, wooden constructions and paper. We believe that everything that is made from fossil-based materials today can be made from a tree tomorrow. Stora Enso has some 23 000 employees, and sales in over 50 countries. Our sales in 2020 were EUR 8.6 billion. Stora Enso shares are listed on Nasdaq Helsinki Oy (STEAV, STERV) and Nasdaq Stockholm AB (STE A, STE R). In addition, the shares are traded in the USA as ADRs (SEOAY). storaenso.com

Stora Enso has completed the union negotiations regarding the closure of pulp and paper production at Kvarnsveden. A total of 340 people will be permanently laid off. Some 25% of the redundancies can be managed through pension arrangements, and 100 people have already found new jobs within Stora Enso or with an external employer. The redundancies will mostly take effect in November.

In April 2021, Stora Enso announced a plan to permanently close down pulp and paper production at its Kvarnsveden site due to the declining paper market. As a result of the co-determination negotiations regarding the Kvarnsveden site, pulp and paper production will be closed permanently from 30 September 2021. The customer service centre at Kvarnsveden will be closed by 31 December 2021. The power plant will continue to operate, but only for the purpose of district heating and for maintaining the buildings onsite.

When the co-determination plan was announced in April, the maximum personnel impact was estimated to be 440 people. As a result of the negotiations, 340 people will be permanently laid off. Some 25% of the redundancies can be managed through pension arrangements, and 100 people have already found new jobs within Stora Enso or with an external employer. This includes employees who will work with energy production at the power plant. The redundancies will mostly take place in November.

Stora Enso offers individual support to the affected employees. This includes re-training and relocation support for people who transfer to other locations for work. We will also offer financial support for employees starting up their own companies. Stora Enso collaborates with the City of Borlänge and other local and regional stakeholders through various activities, such as recruitment fairs.

Stora Enso has initiated a project to find future options for the Kvarnsveden site. The process is being coordinated with the City of Borlänge and other regional and national stakeholders. The Kvarnsveden site offers many advantages for future use, including strong industrial infrastructure, a railway connection to Gothenburg harbour, a connection to the national electricity grid, and availability of clean water.

Stora Enso continues to produce supercalendered (SC) papers at its Langerbrugge site in Belgium and its Maxau site in Germany, and improved newsprint at the Anjala site in Finland.

Earlier releases about the plan for the Kvarnsveden and Veitsiluoto sites:
20 April 2021: Stora Enso initiates a plan to permanently close down pulp and paper production at Kvarnsveden and Veitsiluoto mills
17 June 2021: Stora Enso completes co-determination negotiations at Veitsiluoto site
1 July 2021: Stora Enso completes co-determination negotiations at Kvarnsveden site concerning the closure of pulp and paper production

Part of the bioeconomy, Stora Enso is a leading global provider of renewable solutions in packaging, biomaterials, wooden constructions and paper. We believe that everything that is made from fossil-based materials today can be made from a tree tomorrow. Stora Enso has some 23 000 employees, and sales in over 50 countries. Our sales in 2020 were EUR 8.6 billion. Stora Enso shares are listed on Nasdaq Helsinki (STEAV, STERV) and Nasdaq Stockholm (STE A, STE R). In addition, the shares are traded in the USA as ADRs (SEOAY). storaenso.com

Stora Enso has completed the co-determination negotiations concerning the closing down the pulp and paper production at its Kvarnsveden site in Sweden. The closure will take place by the end of the third quarter of 2021.

In April 2021, Stora Enso announced a plan to permanently close down pulp and paper production at its Kvarnsveden site due to the declining paper market. As a result of the co-determination negotiations regarding the Kvarnsveden site, pulp and paper production will be closed permanently by the end of the third quarter of 2021.The customer service centre located at Kvarnsveden will be closed down by the end of 2021. Power plant will continue to operate, however only for the purpose of district heating and for maintaining buildings onsite.

When the co-determination plan was announced in April, the maximum personnel impact was estimated to be 440 people. Following the closure decision, co-determination negotiations regarding personnel impact and the related redundancies will begin shortly. No lay-offs will be executed before these negotiations have been concluded.

Stora Enso has initiated a project to find future options for the Kvarnsveden site. The process is coordinated with the City of Borlänge and other regional and national stakeholders. Kvarnsveden site offers many advantages for future use, including strong industrial infrastructure, a railway connection to Gothenburg harbor, a connection to the national electricity grid, and availability of clean water.

Stora Enso continues to produce supercalendered (SC) papers at Langerbrugge site in Belgium and Maxau site in Germany, and improved newsprint at Anjala site in Finland and Sachsen site in Germany.

Earlier releases about the plan for Kvarnsveden and Veitsiluoto sites:

20 April 2021: Stora Enso initiates a plan to permanently close down pulp and paper production at Kvarnsveden and Veitsiluoto mills

17 June 2021: Stora Enso completes co-determination negotiations at Veitsiluoto site

Part of the bioeconomy, Stora Enso is a leading global provider of renewable solutions in packaging, biomaterials, wooden constructions and paper. We believe that everything that is made from fossil-based materials today can be made from a tree tomorrow. Stora Enso has some 23 000 employees, and sales in over 50 countries. Our sales in 2020 were EUR 8.6 billion. Stora Enso shares are listed on Nasdaq Helsinki Oy (STEAV, STERV) and Nasdaq Stockholm AB (STE A, STE R). In addition, the shares are traded in the USA as ADRs (SEOAY). storaenso.com/investors

Stora Enso has decided to invest EUR 21 million to improve the competitiveness and environmental performance of the Anjala-Ingerois production sites. Stora Enso will also invest EUR 26 million in modernising the pulp production at Nymölla in Sweden.

The goal of the investment at Anjala paper- and Ingerois board production sites is to reduce the emissions and to ensure flexible use of different fuel mixtures in heat production. The project work is planned to start during the second quarter of 2021 and to be completed in the third quarter of 2023.

The project at Nymölla is the second modernisation step towards making the pulp production process more competitive and sustainable for the future. The objective of the investment is to increase the annual softwood pulp production capacity from approximately 220 000 tonnes to 245 000 tonnes. The modernisation is planned to start during the second quarter of 2021 and to be completed in the third quarter of 2022.

“These investments will improve the competitiveness of both sites and at the same time contribute to our sustainability performance,” says Kati ter Horst, Executive Vice President, Paper division at Stora Enso.

Stora Enso in Anjala-Ingerois
In Anjala Stora Enso produces book papers, magazine papers and improved newsprint. The annual production capacity is 435 000 tonnes of paper. The site employs approximately 300 people and is closely integrated with the neighbouring Stora Enso Ingerois production site, utilising synergies in raw material and energy supply. In Ingerois Stora Enso produces folding boxboard, with an annual production capacity of 295 000 tonnes. The site employs approximately 200 people.

Stora Enso in Nymölla
In Nymölla Stora Enso produces chemical pulp and woodfree uncoated paper for office use. The annual production capacity is 485 000 tonnes of paper and 330 000 tonnes of pulp. The site employs approximately 500 people.

Part of the bioeconomy, Stora Enso is a leading global provider of renewable solutions in packaging, biomaterials, wooden constructions and paper. We believe that everything that is made from fossil-based materials today can be made from a tree tomorrow. Stora Enso has some 23 000 employees, and sales in over 50 countries. Our sales in 2020 were EUR 8.6 billion. Stora Enso shares are listed on Nasdaq Helsinki Oy (STEAV, STERV) and Nasdaq Stockholm AB (STE A, STE R). In addition, the shares are traded in the USA as ADRs (SEOAY) storaenso.com

Stora Enso has signed an agreement to divest its Sachsen Mill located in Eilenburg, Germany, to the Swiss-based family-owned company Model Group. Sachsen Mill has an annual production capacity of 310 000 tonnes of newsprint specialty paper based on recycled paper.

Under the agreement, Model Group will own and operate Sachsen Mill after the transaction is closed. Stora Enso will continue to sell and distribute Sachsen’s paper products under a contract manufacturing agreement for a period of 18 months after the closing. After that period, Model will convert the mill to the production of containerboard. All 230 employees at Sachsen Mill will move to Model Group with the transaction.

“We believe Model will be a good owner to ensure long-term development of the Sachsen Mill. We will continue to serve our customers with high quality paper products from Sachsen Mill at least until the end of 2022,” said Kati ter Horst, EVP, Stora Enso’s Paper division.

”Sachsen Mill is a perfect fit into our value chain within our existing network of operations, and we are looking forward to developing the site further,” said Daniel Model, Chairman and CEO.

The enterprise value of the transaction is EUR 35 million, subject to customary purchase price adjustments. The impact on Stora Enso’s operational EBIT or net debt is not considered material. Stora Enso will book a one-time cost of approximately EUR 32 million in its IFRS operating profit in the second quarter of 2021, considered as an item affecting comparability (IAC). The transaction is expected to be closed during the third quarter of 2021.

About Model Group
Model Holding AG is a 100% family-owned company founded in 1882. Headquartered in Weinfelden, Switzerland, Model Group develops, produces and delivers innovative packaging solutions using cardboard and corrugated board. The company has 9 corrugating production plants in Europe, and it produces containerboard paper at two sites, Weinfelden and Niedergösgen, in Switzerland. The company revenue in 2020 was CHF 859 million and the number of employees 4 225. More info at www.modelgroup.com

Part of the bioeconomy, Stora Enso is a leading global provider of renewable solutions in packaging, biomaterials, wooden constructions and paper. We believe that everything that is made from fossil-based materials today can be made from a tree tomorrow. Stora Enso has some 23 000 employees, and sales in over 50 countries. Our sales in 2020 were EUR 8.6 billion. Stora Enso shares are listed on Nasdaq Helsinki (STEAV, STERV) and Nasdaq Stockholm (STE A, STE R). In addition, the shares are traded in the USA as ADRs (SEOAY). storaenso.com

Stora Enso has decided to commence a feasibility study and environmental permit application process on enhancing and expanding the pulp- and board-making capabilities at its Skoghall Mill in Sweden. The investment would leverage the already strong mill into an integrated, highly cost-competitive and environmentally-friendly producer of packaging board and bleached softwood market pulp. The investment would serve customers globally and further establish Stora Enso as a provider of high-quality, renewable packaging materials.

The feasibility study will evaluate a possible upgrade and expansion of existing integrated pulp capacity from 370 000 tonnes to 780 000 tonnes annually and a possible increase of 120 000 tonnes in board capacity. After the investment, the mill would be integrated close to 100%, with an additional 220 000 tonnes of softwood market pulp. This would enable a further increase in cost-competitive board production. The project would also significantly lower the fossil CO₂ emissions of production. The findings of a recently completed pre-feasibility study supported continuation of the investment process.

If the investment is approved following the feasibility study and environmental permit application process, the capital expenditure for the upgrade and expansion is estimated to be approximately EUR 800–850 million. The feasibility study is expected to be completed by the end of 2021. Production would start earliest in Q4/2023. Currently, Skoghall Mill has an annual production capacity of 885 000 tonnes of packaging board.

“Skoghall Mill is one of our core integrated platforms for packaging materials. The investment would allow us to grow and be more flexible in serving our customers and meet an increasing demand for sustainable packaging among consumers. The investment would be in line with our strategy to accelerate growth in the packaging business as well as to develop the competitiveness of our mills based on economies of scale and integration benefits. It would also bolster the potential of profitable growth in attractive packaging end-use segments, such as liquid packaging board and coated unbleached kraft. The possible decision regarding an expansion of Skoghall Mill will be made once the feasibility study has been completed and pending the outcome of the environmental permit application process with local authorities,” says Hannu Kasurinen, EVP, Stora Enso’s Packaging Materials division.

Investor enquiries:
Ulla Paajanen
SVP, Investor Relations
tel. +358 40 763 8767

Part of the bioeconomy, Stora Enso is a leading global provider of renewable solutions in packaging, biomaterials, wooden constructions and paper. We believe that everything that is made from fossil-based materials today can be made from a tree tomorrow. Stora Enso has some 25 000 employees in over 30 countries. Our sales in 2019 were EUR 10.1 billion. Stora Enso shares are listed on Nasdaq Helsinki (STEAV, STERV) and Nasdaq Stockholm (STE A, STE R). In addition, the shares are traded in the USA as ADRs (SEOAY). storaenso.com

Stora Enso has completed the co-determination negotiations concerning the closure of one standard newsprint paper machine (PM3) and the deinking plant at Stora Enso’s Hylte Mill in Sweden. The maximum personnel impact is 140 people.

As a result of the co-determination negotiations, PM3 will be shut down by the end of 2020 and the DIP latest in Q2 2021. Negotiations on organizational restructuring, including the risk analysis, have started.

Stora Enso will continue to produce standard newsprint at Hylte, Langerbrugge and Sachsen mills. The closure of Hylte Mill PM3 will not impact Stora Enso’s newsprint product offering, and we will be able to serve our customers as today.

Investor enquiries:
Ulla Paajanen
SVP, Investor Relations
tel. +358 40 763 8767

Part of the bioeconomy, Stora Enso is a leading global provider of renewable solutions in packaging, biomaterials, wooden constructions and paper. We believe that everything that is made from fossil-based materials today can be made from a tree tomorrow. Stora Enso has some 25 000 employees in over 30 countries. Our sales in 2018 were EUR 10.5 billion. Stora Enso shares are listed on Nasdaq Helsinki (STEAV, STERV) and Nasdaq Stockholm (STE A, STE R). In addition, the shares are traded in the USA as ADRs (SEOAY). storaenso.com

Stora Enso will be the presenting sponsor for the FIS Nordic World Ski Championships 2023 in Planica, Slovenia and in Trondheim, Norway in 2025.

This marks the fifth and sixth time that Stora Enso will be sponsoring the Nordic World Ski Championships. The company will be presenting sponsor for the upcoming event in Oberstdorf, Germany in 2021 and previously served as presenting sponsor for the 2019 event in Seefeld, Austria, and the 2017 event in Lahti, Finland, as well as being the main sponsor in Falun, Sweden in 2015.

“We are excited to prolong our sponsoring of the FIS Nordic World Ski Championships until 2025. Our renewable products made of wood give us the opportunity to contribute to making these world-class sustainable events,” says Annica Bresky, President and CEO, Stora Enso.

Stora Enso’s products made of wood are more climate-friendly and have a lower carbon footprint compared to many products made from fossil-based materials. Throughout the events, Stora Enso will showcase its sustainable products and solutions in numerous applications such as wooden buildings, juice cartons, paper cups, paper bags, medal boxes, prize podiums and awards. Stora Enso will also contribute to the circularity of the championships by providing expertise within these areas.

“Stora Enso is a role model sponsor for FIS with their proactive support of the local organising committees' sustainability initiatives with practical measures. We are extremely pleased that Stora Enso has extended its engagement for the FIS Nordic World Ski Championships through to 2025. The company’s strong eco-friendly philosophy and actions will have a chance to truly shine with the engaged hosts of Planica and Trondheim, both of whom have highlighted sustainability at the core of the Championships' DNA. It is truly a perfect fit for all parties,” says Sarah Lewis, Secretary General of the International Ski Federation (FIS).

“The Nordic World Ski Championships provide an excellent platform to increase brand awareness while promoting the benefits of using fossil free and recyclable products to combat global warming. Together with the International Ski Federation and the local organising committees, we are committed to contributing to a more eco-friendly future,” says Annica Bresky.

Part of the bioeconomy, Stora Enso is a leading global provider of renewable solutions in packaging, biomaterials, wooden constructions and paper. We believe that everything that is made from fossil-based materials today can be made from a tree tomorrow. Stora Enso has some 25 000 employees in over 30 countries. Our sales in 2019 were EUR 10.1 billion. Stora Enso shares are listed on Nasdaq Helsinki (STEAV, STERV) and Nasdaq Stockholm (STE A, STE R). In addition, the shares are traded in the USA as ADRs (SEOAY). storaenso.com

Stora Enso will start codetermination negotiations with employees at its Hylte Mill in Sweden regarding a plan to reorganise the mill, including permanent closure of paper machine PM3 and the deinking plant (DIP). After the planned restructuring, the mill would run on 100% thermomechanical pulp (TMP), improving the competitiveness of the mill. The planned closure of PM3 and the reorganisation of the mill would impact a maximum of 140 persons. PM3 is planned to be closed by the end of 2020 and the DIP latest in Q2 2021.

The plan would result in annual cost savings of EUR 14 million. Stora Enso will book restructuring costs of approximately EUR 12 million as an item affecting comparability (IAC) in its Q3 2020 results, of which about EUR 8 million will have a cash impact. The planned closure would not have material impact on Stora Enso’s sales or operational EBIT.

“The decline in global newsprint demand continues due to changes in consumer behaviour, and it is not expected to recover. This has led to global overcapacity, low operating rates, and poor profitability at the Hylte Mill. The planned measures would improve the competitiveness of the mill. Also, Stora Enso has invested in the future of the site to produce formed fiber products and biocomposites,” says Kati ter Horst, EVP, Paper division.

No decisions regarding the planned reorganisation or employee impact will be taken until the codetermination negotiations have been concluded. Hylte Mill currently operates two newsprint machines with an annual capacity of 480 000 tonnes. Production at Hylte Mill would continue on one line, PM4 for standard newsprint paper. The planned shutdown would decrease Stora Enso’s annual newsprint capacity by 26% or 235 000 tonnes, which represents 4% of total European newsprint paper capacity. The planned shutdown would reduce Stora Enso’s total paper capacity by 5%.

Stora Enso will continue to produce standard newsprint at Hylte, Langerbrugge and Sachsen mills. The closure of Hylte Mill PM3 would not impact Stora Enso’s newsprint product offering, and we would be able to serve our customers as today.

Part of the bioeconomy, Stora Enso is a leading global provider of renewable solutions in packaging, biomaterials, wooden constructions and paper. We believe that everything that is made from fossil-based materials today can be made from a tree tomorrow. Stora Enso has some 25 000 employees in over 30 countries. Our sales in 2019 were EUR 10.1 billion. Stora Enso shares are listed on Nasdaq Helsinki (STEAV, STERV) and Nasdaq Stockholm (STE A, STE R). In addition, the shares are traded in the USA as ADRs (SEOAY). storaenso.com

Stora Enso’s remuneration policy, published in January 2020, has been ranked the best for Large Cap companies in Finland.

The members of the ranking committee include representatives from the pension insurance company Varma, the Directors’ Institute of Finland, and Nasdaq. The aim of the ranking is to promote good governance practices. Analysis of the remuneration policies for governance bodies was based on, for example, the content, relevance and readability of the text, and how easy it is to find the document.

Stora Enso’s remuneration policy was particularly praised for its connection to the Group's strategy and sustainability work. The policy was also considered thorough and precise.

“This is a highly appreciated accolade for the work we have done in Stora Enso to prepare this policy. The remuneration elements must drive the company’s business strategy and its long-term financial interests. Stora Enso’s clear and transparent remuneration policy is formulated to achieve that goal,” says Jorma Eloranta, Chair of Stora Enso’s Board of Directors and its Remuneration Committee.