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 web site in Oulu, the place a brand new packaging board machine is presently 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’ll 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 entails Junnikkala’s new sawmill in Oulu, which is anticipated to be a central driver of long-term operational advantages.
As soon as absolutely operating, the ability is forecast to contribute about €15 million in annual price synergies.
Whereas the entire enterprise worth of the deal is as much as €137 million, a portion of the cost will depend on the brand new sawmill reaching sure manufacturing targets.
This conditional construction ties the ultimate price of the acquisition to the longer term efficiency of the positioning.
Stora Enso has indicated that this setup will assist make sure that anticipated effectivity good points and output targets are met earlier than the complete transaction worth is realised.
The acquisition types 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 reinforce 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.
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