Stora Enso Acquires Junnikkala Oy to Bolster Wood Supply and Expand Sawmilling Operations in Finland

Stora Enso Acquires Junnikkala Oy to Bolster Wood Supply and Expand Sawmilling Operations in Finland

(IN BRIEF) Stora Enso is acquiring Finnish sawmill company Junnikkala Oy to secure a reliable wood supply for its packaging board production in Oulu and to support its wood products division with enhanced resources. The acquisition, valued up to EUR 137 million and contingent on production milestones, will increase Stora Enso’s wood procurement in Finland by 1.7 million m³ annually and expand its sawmilling capacity by 700,000 m³. Expected synergies of EUR 15 million annually will improve efficiency and resource use, while Junnikkala’s 230 employees will join Stora Enso, ensuring continued expertise.

(PRESS RELEASE) HELSINKI, 29-Oct-2024 — /EuropaWire/ — Stora Enso has signed an agreement to acquire full ownership of Finnish sawmill company Junnikkala Oy, a move designed to ensure a cost-effective wood supply for its packaging board operations in Oulu, Finland, and to strengthen its wood products division. The acquisition, valued at up to EUR 137 million and tied to production milestones, is expected to close in the first half of 2025, pending regulatory approvals.

Junnikkala, which operates three sawmills in Finland—including a state-of-the-art facility near Stora Enso’s Oulu site—produces sawn timber and processed wood products for both domestic and international markets. This acquisition will enhance synergies with the Oulu board site, providing a consistent supply of raw materials, such as wood chips and pulpwood, that are critical to production.

Hans Sohlström, President and CEO of Stora Enso, noted, “As we prepare for the new packaging board line in Oulu, this acquisition will bolster our wood supply foundation, optimize operational efficiency, and integrate production at Oulu with Junnikkala’s sawmills, reinforcing our wood products range.”

The acquisition will expand Stora Enso’s wood procurement in Finland by 1.7 million m³ and increase its sawmilling capacity by approximately 700,000 m³ annually. By integrating Junnikkala’s sawmill operations within its Wood Products division and incorporating its wood procurement into the Forest division, Stora Enso anticipates EUR 15 million in annual synergies once the Oulu sawmill is fully operational, while maintaining its existing sawmill sites. This acquisition is also expected to boost resource efficiency and reduce costs through improved sawlog and pulpwood supply in Finland. All 230 Junnikkala employees will transition to Stora Enso, ensuring continuity in expertise and operations.

About Junnikkala Oy
Junnikkala is a privately-owned Finnish sawmill company that procures, processes, and manufactures wood products for the Finnish and export markets. Founded in 1960, the company operates three sawmills in northern Finland; the Kalajoki sawmill serves construction companies and carpentry industry, the Oulainen sawmill specialises in small diametre logs, and the new state-of-the-art sawmill in Oulu started ramp-up in the end of 2023.

Stora Enso
Part of the global bioeconomy, Stora Enso is a leading provider of renewable products in packaging, biomaterials and wooden construction, and one of the largest private forest owners in the world. Stora Enso has approximately 20,000 employees and our sales in 2023 were EUR 9.4 billion. Stora Enso shares are listed on Nasdaq Helsinki Oy (STEAV, STERV) and Nasdaq Stockholm AB (STE A, STE R). In addition, the shares are traded in OTC Markets (OTCQX) in the USA as ADRs and ordinary shares (SEOAY, SEOFF, SEOJF). storaenso.com/investors

Media Contacts:

Carl Norell
SVP Corporate Communications
tel. +46 72 241 0349

Investor enquiries: 
Anna-Lena Åström
SVP Investor Relations
tel. +46 70 210 7691

SOURCE: STORA ENSO OYJ