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Stora Enso continues to divest paper production capacity

Alissa Demorest

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Stora Enso continues to divest paper production capacity

The Finnish supplier has announced it is to sell four of its five remaining paper production sites in Europe as it focuses on growing the packaging, biomaterials and building materials segments of its business.

In line with its strategy of driving three key growth divisions: packaging, biomaterial innovations and building materials, Stora Enso is moving to further divest its production of paper products. The division employs a staff of around 2,200 and reported sales of €1.70m in 2021.

“Paper products have continued their structural decline,” noted President and CEO Annica Bresky in the company’s 2021 annual report. Last year, paper sales accounted for 16% of the company’s business.

In addition to the already shuttered sites of Kvarnsveden (Sweden), Veitsiluoto (Finland) and Sachsen in Germany, Stora Enso is in the process of selling two more sites in Sweden (Hylte and Nymölla), one in Finland (Anjala) and one in Germany (Maxau). The Langebrugge site in Belgium, however, will remain in the group.

In other news, in reaction to Russia's invasion of Ukraine, early March Stora Enso announced that it was stopping production and sales at its three packaging sites and two sawmills in Russia. The supplier’s sales in Russia account for 3% of total turnover. 

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