Stora Enso secures €435M loan to support growth in Finnish fiber-based boards
Stora Enso Oulu mill in Finland (Image credit: Stora Enso).
15 Jul 2024 --- Stora Enso has signed a €435 million (US$473.6 million) bilateral loan with the European Investment Bank (EIB) to bolster its growth in renewable, fiber-based consumer packaging boards.
The new long-term bilateral loan partially finances Stora Enso’s €1 billion investment in its Oulu mill in Finland. The company expects to begin operations at the mill with a novel, converted consumer board production line in the first half of 2025.
“The investment in Oulu supports our growth strategy in renewable, circular packaging by providing new volume for the growing packaging segment,” says Hannu Kasurinen, executive vice president for Packaging Materials Division at Stora Enso.
“The wood fiber is sourced from sustainably managed forests in the Nordics, and the boards are designed to replace plastics in food and personal care packaging.”
The loan features an amortizing structure, with the final repayment anticipated in 2036, lengthening the group’s debt maturity profile.
“This new loan with EIB will not only provide us with financial flexibility, but it also underscores our commitment to sustainable, profitable growth. Securing access to long-term capital from a variety of sources is a pivotal element of our strategy, as it enables us to invest in new growth opportunities,” says Kaarlo Höysniemi, SVP Group Treasury at Stora Enso.
In other recent developments, Stora Enso studied the possibility of converting one of the Langerbrugge, Belgium, site’s two paper machines into a high-volume recycled containerboard line.
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