Stora Enso, a renewable materials leader, has reached an agreement to acquire Finnish sawmill operator Junnikkala for up to €137 million ($147 million), solidifying its wood supply for packaging production at its Oulu site. The acquisition, pending regulatory approval, is expected to close by mid-2025. This strategic move supports Stora Enso’s transformation of its Oulu mill from paper to packaging board production, aiming to meet the growing demand for renewable, paper-based packaging.
Through the acquisition, Stora Enso will integrate Junnikkala’s three sawmills into its operations, including one located just 10 kilometers from the Oulu facility. This proximity will streamline resource flow for wood chips, pulpwood, and biomass, bolstering operational efficiency across the Oulu production line, set to commence by early 2025. The Oulu mill will focus on folding boxboard and coated unbleached kraft (CUK) board, targeting the food and beverage packaging sector, particularly for frozen, chilled, and dry products.
With Junnikkala’s added capacity, Stora Enso’s wood procurement in Finland will grow by approximately 1.7 million cubic meters annually, and its overall sawmilling output will increase by 700,000 cubic meters. This acquisition will enable Stora Enso to maintain a stable supply chain, especially for wood-based by-products vital for pulp and energy at the Oulu site. Additionally, integrating Junnikkala’s workforce of about 230 employees will contribute to the long-term sustainability of Finnish wood sourcing and production capabilities.
This investment underlines Stora Enso’s broader strategy to expand its sustainable packaging solutions and strengthen its presence in the Baltic Rim wood market, furthering its position as a key player in the circular bioeconomy.