Helsinki, Finland 28 April 2016 -- Stora Enso has decided to commence a feasibility study with the aim of expanding containerboard production at Ostrołęka Mill in Poland by 500 000 tonnes annually. The findings of a recently completed pre-feasibility study supported continuation of the process. The feasibility study, which is expected to be completed by the end of 2016, will evaluate the profitability of the possible expansion. The studied investment will be cost competitive and it has synergies with the newest containerboard machine in Ostrołęka, which went into production in 2013.
If the investment is approved following the feasibility study, the capital expenditure for the expansion is estimated to be in the range of EUR 350-400 million over a couple of years.
Stora Enso's long term investment criteria is to keep the capital expenditure into fixed assets approximately at the same level as depreciation. The planned investment at Ostrołęka Mill would fit this frame. In addition to fixed asset investments, Stora Enso invests approximately
EUR 100 million annually in biological assets.
"Poland is a large and growing market where we have a strong presence and customer base. Stora Enso regularly conducts feasibility studies to explore potential expansion opportunities. The decision regarding a possible expansion at Ostrołęka Mill will be made once the assessment is completed," says Gilles van Nieuwenhuyzen, EVP Division Packaging Solutions.
Stora Enso is a leading provider of renewable solutions in packaging, biomaterials, wooden constructions and paper on global markets. Our aim is to replace fossil based materials by innovating and developing new products and services based on wood and other renewable materials. We employ some 26 000 people in more than 35 countries, and our sales in 2015 were EUR 10.0 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) on the International OTCQX over-the-counter market.