Stora Enso finalises buy of Finnish sawmill agency Junnikkala

Stora Enso has accomplished its acquisition of Junnikkala Oy, a Finnish sawmill firm, following an settlement first introduced in October 2024.

The deal, valued at as much as €137 million, strengthens Stora Enso’s wooden provide chain and will increase its sawmilling capability considerably.

The acquired sawmills will now function as a part of Stora Enso’s website in Oulu, the place a brand new packaging board machine is at the moment scaling up manufacturing.

The combination is designed to enhance operational effectivity and guarantee a gentle provide of uncooked materials for the corporate’s rising packaging enterprise.

The acquisition will elevate Stora Enso’s annual wooden procurement in Finland by roughly 1.7 million cubic metres.

On the identical time, it should increase the group’s sawmilling capability by round 700,000 cubic metres, providing a broader product vary inside its wooden merchandise division.

One key side of the deal includes Junnikkala’s new sawmill in Oulu, which is predicted to be a central driver of long-term operational advantages.

As soon as totally operating, the power is forecast to contribute about €15 million in annual value synergies.

Whereas the overall enterprise worth of the deal is as much as €137 million, a portion of the fee is determined by the brand new sawmill attaining sure manufacturing targets.

This conditional construction ties the ultimate value of the acquisition to the longer term efficiency of the location.

Stora Enso has indicated that this setup will assist make sure that anticipated effectivity features and output targets are met earlier than the total transaction worth is realised.

The acquisition varieties a part of Stora Enso’s broader technique to strengthen its place within the wooden processing and packaging sectors.

With elevated manufacturing capability and improved entry to uncooked supplies, the corporate goals to boost its competitiveness within the rising fibre-based packaging market.

“Stora Enso finalises buy of Finnish sawmill agency Junnikkala” was initially created and revealed by Packaging Gateway, a GlobalData owned model.

The data on this website has been included in good religion for normal informational functions solely. It isn’t supposed to quantity to recommendation on which it is best to rely, and we give no illustration, guarantee or assure, whether or not categorical or implied as to its accuracy or completeness. You should receive skilled or specialist recommendation earlier than taking, or refraining from, any motion on the premise of the content material on our website.