EIB Funds €435 Million to Stora Enso for Sustainable Packaging Transformation in Oulu

EIB Funds €435 Million to Stora Enso for Sustainable Packaging Transformation in Oulu

(IN BRIEF) The European Investment Bank (EIB) is extending a €435 million credit to Stora Enso to upgrade its Oulu manufacturing site for producing eco-friendly, fiber-based packaging for food and personal care products. This investment aims to reduce plastic reliance and global pollution by offering a sustainable alternative. The project, part of Stora Enso’s broader €1 billion investment, will enhance economic growth and development in Northern Finland. EIB Vice-President Thomas Östros highlighted the initiative’s contribution to a green, circular economy and its alignment with EU environmental and economic strategies. Kaarlo Höysniemi of Stora Enso emphasized the loan’s role in supporting the company’s sustainable growth and long-term capital strategy.

(PRESS RELEASE) LUXEMBOURG, 12-Jul-2024 — /EuropaWire/ — The European Investment Bank (EIB) has approved a €435 million credit line for Stora Enso, aimed at transforming its Oulu manufacturing site to produce eco-friendly packaging for food and personal care products. This funding will support the production of recyclable, fiber-based packaging, reducing the reliance on plastic and mitigating global pollution. The upgrade at the Oulu plant, which follows Stora Enso’s prior €1 billion investment, will provide an affordable, sustainable alternative to plastic packaging for a global client base.

EIB Vice-President Thomas Östros highlighted the significance of this loan in promoting a green, circular economy, emphasizing its role in fostering innovation, growth, and job creation. He noted that Stora Enso’s efforts demonstrate the viability of the green economy in driving economic and environmental sustainability. Additionally, this project will enhance economic vitality in Northern Finland and strengthen the EU’s industrial competitiveness and regional cohesion.

Kaarlo Höysniemi, Stora Enso’s Senior Vice-President of Group Treasury, expressed that the EIB loan will provide financial flexibility and support the company’s commitment to sustainable growth. The loan aligns with key EU initiatives such as the European Green Deal, bioeconomy strategy, and circular economy action plan, furthering environmental protection and economic sustainability goals.

Background information

European Investment Bank (EIB):

The European Investment Bank (ElB) is the long-term lending institution of the European Union, owned by its Member States. It finances sound investments that contribute to EU policy objectives. EIB projects bolster competitiveness, drive innovation, promote sustainable development, enhance social and territorial cohesion, and support a just and swift transition to climate neutrality.

The EIB Group, which also includes the European Investment Fund (EIF), signed a total of €88 billion in new financing for over 900 projects in 2023. These commitments are expected to mobilise around €320 billion in investment, supporting 400,000 companies and 5.4 million jobs.

All projects financed by the EIB Group are in line with the Paris Climate Accord. The EIB Group does not fund investments in fossil-fuels. We are on track to deliver on our commitment to support  €1 trillion in climate and environmental sustainability investment in the decade to 2030 as pledged in our Climate Bank Roadmap. Over half of the EIB Group’s annual financing supports projects directly contributing to climate change mitigation, adaptation, and a healthier environment.

Approximately half of the EIB’s financing within the EU is directed towards cohesion regions, where per capita income is lower. This underscores the Bank’s commitment to fostering inclusive growth and the convergence of living standards.

About 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. We create value with our low-carbon and recyclable fiber-based products, through which we support our customers in meeting the demand for renewable sustainable products. 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 Contact:

Kristiina Randmaa
k.randmaa@eib.org
+352 4379 – 72894

Press Office

press@eib.org
+352 43791

SOURCE: European Investment Bank