Stora Enso Building New Machine in Poland

Stora Enso has announced plans to invest EUR 285 million (US$381.4 million) to add new corrugated packaging capacity at its Ostroleka mill in Poland. In a release announcing the project, the company says that the new capacity will strengthen Stora’s business in Central and Eastern Europe.

The project is expected to be complete by the first quarter of 2013.

The company notes that the new containerboard machine will not only strengthen its product offering, but will also improve Stora Enso's overall cost position through efficient internal supply of lightweight containerboard made from recycled fiber. In conjunction with the start-up, Stora Enso plans to shut down containerboard machine PM 2 at the mill.

“Customer demand for modern lightweight corrugated packaging is increasing rapidly. This investment supports Stora Enso's objective of offering demanding customers new packaging solutions,” says Mats Nordlander, Stora’s executive VP, Packaging Business Area.

“Recycled fiber is the dominant raw material for corrugated packaging and continues to win share from virgin fibers. The markets for transport packaging in Central and Eastern Europe have grown and will continue to grow by over 5 percent per year. This investment will support our growth and increase Stora Enso's self-sufficiency in containerboards from 35 percent to 60 percent, and it will also clearly improve the cost competitiveness of Stora Enso's Industrial Packaging segment,” Nordlander adds. “Stora Enso's integrated RCP (recovered paper) collection network in Poland, the new efficient power plant just completed and this new state-of-the-art containerboard machine will make Ostroleka the benchmark in both cost and product offering in Europe.”

The Ostroleka mill’s annual capacity currently is 270,000 metric tons of containerboard and kraft paper. The annual capacity of the new containerboard machine will be 455,000 metric tons, and the annual capacity of paper machine 2 is 85,000 metric tons of containerboard.