Stora Enso invested 38 million Euros in unbleached kraft pulp (UKP) production at its Enocell site in Finland and Euro 42 million in fluff pulp production improvement at its Skutskär site in Sweden in a bid to strengthen its focus on specialized pulp grades. These investments are expected to support the growing consumer demand for non-bleached renewable packaging materials and hygiene products respectively.
By increasing the share of UKP in the pulp portfolio, Stora Enso continues on its strategic path to develop more specialized Nordic pulp grades while optimizing its share in standard market pulp. The long-term trends point towards consumer preference for less bleached or brown fiber-based renewable packaging products.
Following the investment, the Enocell site will be able to flexibly produce UKP and Nordic Bleached Softwood Kraft (NBSK) pulp. Due to the reduced use of bleaching chemicals, the carbon footprint per ton of produced UKP will be more than 20% lower than the equivalent amount of bleached pulp produced at the Enocell site. The investment is expected to be completed during the last quarter of 2024.
The investment in fluff pulp production improvement at the Skutskär site strengthens Stora Enso’s position as the leading fluff pulp producer in Europe. Due to the upgrades made with the investment, the group can meet customer demand for specific roll sizes, improve work safety, and grow fluff pulp production at the Skutskär site. The investment is expected to be completed during the second quarter of 2024.
“Through optimizing our pulp portfolio, we advance the more specialized pulp offering, while also improving production and sustainability performance. This will allow us to meet the rapidly growing demand for using unbleached and less bleached pulp in packaging and hygiene applications,” says Johanna Hagelberg, executive vice-president, Biomaterials division at Stora Enso.
Both investments fall within the Group’s capital expenditure guidance.
Stora Enso’s Enocell site’s annual capacity is 630,000 tons of softwood and hardwood pulp. The site employs approximately 280 people. Stora Enso’s Skutskär site’s annual capacity is 545,000 tons of fluff, softwood and hardwood pulps. The site employs approximately 420 people.