Stora Enso and SEB Forge Path for Forest Industry Entrepreneurs with Innovative Financing Model

Stora Enso and SEB Forge Path for Forest Industry Entrepreneurs with Innovative Financing Model

(IN BRIEF) Stora Enso’s innovative Harvesting Partner concept, aimed at fostering entrepreneurship and skillful operators in the forest industry, has expanded across Sweden, Finland, Norway, and Lithuania since its launch in November 2022. In collaboration with SEB, Stora Enso has introduced a new financing model, enabling entrepreneurs to access machinery through a rental arrangement, reducing initial investment barriers. Jakob Hansson, Head of SEB Product as a Service Incubator for Large Corporates, highlights the model’s aim to prolong machinery usage and end-of-life sustainability. Mattias Bränngård, Sourcing Director, Harvesting in Stora Enso, emphasizes the model’s role in attracting individuals to rural entrepreneurship while maintaining control over machinery circularity. The Harvesting Partner concept entails a four-year contract offering financing, support services, and networking opportunities, facilitating safe, sustainable, and efficient operations in alignment with Stora Enso’s objectives.

(PRESS RELEASE) HELSINKI, 7-Mar-2024 — /EuropaWire/ — Stora Enso launched its Harvesting Partner concept in November 2022 to encourage more skillful operators and new entrepreneurs to join the forest industry. The concept was initially introduced in Sweden, but it has since then been launched also in Finland, Norway and Lithuania. Stora Enso is currently recruiting for the second generation of harvesting partners that could join the network in 2024.

SEB has been Stora Enso’s partner from the start, and the bank has developed a new financing model to make it easier for the new entrepreneurs to start their business. Based on this model, new machinery is rented with a monthly cost for a four-year rental period after which the machinery will be returned to Stora Enso for maintenance and further use either in a new rental or in training new harvesting partners.

“We are happy to support with a financial set-up that enables Stora Enso to retain ownership and control of the machines with the aim to extend usage over its lifetime as well as prolong the machines end-of-life,” says Jakob Hansson, Head of SEB Product as a Service Incubator for Large Corporates.

“Together with SEB we want to attract more people to join the industry and enable entrepreneurship for people living in the rural areas. The new financing model developed by SEB lowers that barriers of entry to the market as the initial investment by the entrepreneur will be lower due to external financing,” says Mattias Bränngård, Sourcing Director, Harvesting in Stora Enso. “The financing model also enables us to have control of the circularity and further use of the machinery.”

Stora Enso’s Harvesting Partner concept is based on a four-year contract with new or established entrepreneurs. The contract includes financing of new machinery, accounting and HR services, training and participation in Stora Enso’s management and harvesting networks. Through the contract, Harvesting Partners will commit to provide Stora Enso with safe, sustainable and efficient operations and agreed volumes as well as developing their operations further.

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 believe that everything that is made from fossil-based materials today can be made from a tree tomorrow. 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 the USA as ADRs and Ordinary Shares (SEOAY, SEOFF, SEOJF).

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SOURCE: STORA ENSO OYJ