HELSINKI, July 19, 2019 /PRNewswire/ -- Stora Enso has
initiated feasibility studies for a possible cross laminated timber
(CLT) unit in connection with its Ždírec mill in the Czech Republic and a new construction beam
unit to be located at the Ybbs mill in Austria. Stora Enso also plans to consolidate
production to increase focus on efficiency and to streamline the
asset base.
Stora Enso continues its transformation into a leading provider
of innovative wood-based solutions. The transformation in Wood
Products includes both selected growth in added-value businesses
and consolidation of production to increase focus on efficient
integrated production.
The proposed expansion in Ždírec would add a total annual
capacity of approximately 120 000 m3of CLT. It would be Stora
Enso's fourth CLT unit, following the inauguration of the Gruvön
CLT unit in Sweden earlier this
year. The study is expected to be completed by the end of 2019.
In Ybbs, the planned expansion would add a total annual capacity
of 60 000 m3of construction beams. The new beam product would
be offered to Building Solutions' customers and sold as a solution
together with CLT and LVL. The feasibility study is expected to be
completed by the end of the first quarter of 2020.
If the investments are approved following the feasibility
studies, the capital expenditure is estimated to be approximately
EUR 90 million. The transformation in
Wood Products also includes the earlier announced plans to close
the Kitee sawmill with a possible consolidation of spruce
production to Varkaus, as well as the divestment of assets related
to Thermowood production at Uimaharju sawmill in Finland. Stora Enso will consolidate the
Thermowood production to Launkalne mill in Latvia.
"We see extensive potential for our engineered wooden materials
in the market, and an opportunity for further growth in the
multi-storey building segment. Our products substitute fossil-based
materials and demand for our premium, renewable products, our
proven massive wood components as well as our building concepts is
constantly increasing. Consolidation would enhance cost efficiency,
optimised raw material usage, efficient automatised production,
synergies between mills and a strong market driven portfolio of
products and services," says Jari
Suominen, Executive Vice President of Stora Enso's Wood
Products division.
Part of the bioeconomy, Stora Enso is a leading global provider
of renewable solutions in packaging, biomaterials, wooden
constructions and paper. We believe that everything that is made
from fossil-based materials today can be made from a tree tomorrow.
Stora Enso has some 26 000 employees in over 30 countries. Our
sales in 2018 were EUR 10.5 billion.
Stora Enso shares are listed on Nasdaq Helsinki (STEAV, STERV) and
Nasdaq Stockholm (STE A, STE R). In addition, the shares are traded
in the USA as ADRs (SEOAY).
storaenso.com
For further information, please
contact:
Cathrine
Wallenius
SVP, Communications and Marketing, Wood Products
tel. +46-70-2092429
Investor enquiries:
Ulla
Paajanen
SVP, Investor Relations
tel. +358-40-763 8767
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