FINLAND – Stora Enso has announced the acquisition of Finnish sawmill company Junnikkala Oy for €137 million (US$148.24 million), a strategic move to bolster its wood supply and support its packaging board operations in Oulu, Finland.
The deal, expected to close in the first half of 2025 pending regulatory approval, includes an enterprise value contingent upon achieving specific production milestones.
Junnikkala Oy is a significant producer of sawn timber and processed wood products, with three sawmills in Finland, including a newly built, state-of-the-art facility located less than 10 kilometers from Stora Enso’s Oulu site.
This proximity is set to create valuable synergies, as Stora Enso will be able to integrate raw materials like wood chips, pulpwood, and biomass from Junnikkala’s sawmills directly into its Oulu packaging board production, securing a cost-effective and stable wood supply.
Hans Sohlström, Stora Enso’s President and CEO, emphasized the strategic importance of the acquisition, saying, “As we prepare for the start-up of our new packaging board line in Oulu, this acquisition provides a solid foundation for wood procurement.
“It will enhance efficiency, optimize the Oulu production site, and expand our wood product offerings.”
This transaction is expected to strengthen Stora Enso’s presence in the Baltic Rim wood market. The company’s annual wood procurement in Finland is set to increase by around 1.7 million m³, and its overall saw-milling capacity will grow by approximately 700,000 m³.
Integrating Junnikkala’s operations will reduce costs and improve resource efficiency in Stora Enso’s wood utilization, ensuring a steady supply of sawlogs, pulpwood, and energy wood for its Finnish sites.
The increased sawmill by-products will also contribute to pulp and energy production at the Oulu site.
Upon completion, Junnikkala’s sawmills will merge into Stora Enso’s Wood Products division, while wood procurement will integrate with the Forest division.
Once the new Oulu sawmill reaches full operation, this addition is anticipated to generate annual synergies of roughly €15 million (US$16.23m).
Stora Enso confirmed that Junnikkala’s approximately 230 employees will transition to Stora Enso, with no changes planned for the company’s existing sawmills.
The deal comes shortly after the company inaugurated a new dry-forming production unit in Skene, Sweden.
This facility is a major milestone in the company’s commitment to sustainable packaging and represents a significant advancement in fibre-based technology.
The Skene facility is now the world’s largest and most advanced dry-forming unit, utilizing a cutting-edge process developed by PulPac.
Unlike traditional wet-forming, this dry-forming method greatly reduces water and energy consumption, providing a more environmentally friendly manufacturing process. Additionally, the process captures and reuses excess material, enhancing circularity.
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