20 May 2025
,Sweden
Stora Enso, a leading provider of renewable solutions, has completed the acquisition of Finnish sawmill company Junnikkala Oy. This move, which was initially announced in October 2024, marks a significant milestone in Stora Enso’s strategic expansion in the wood products industry.
The integration of Junnikkala’s robust infrastructure into Stora Enso’s existing operations is anticipated to bring notable enhancements in cost-efficient wood supply. Key to this setup is the synergy with Stora Enso's packaging board site in Oulu, Finland, where a new packaging board machine is ramping up production. This strategic arrangement will not only improve efficiency but also support the sustainable development of the business by maximizing resource use and minimizing environmental impact.
The acquisition's financial framework is based on an enterprise value that could reach up to EUR 137 million. This value hinges on the achievement of certain production milestones by Junnikkala's operations. The strategic investment is expected to provide substantial financial returns, coupled with operational benefits once Junnikkala’s new sawmill in Oulu becomes fully operational.
One of the standout advantages arising from this acquisition is the ability to generate annual synergies of approximately EUR 15 million. These are expected to result from the optimized operations and enhanced capacity brought forth by the integration of the new sawmill facilities. The operational synergy will leverage Junnikkala’s expertise and established presence in the sawmilling sector, enabling Stora Enso to continue its growth trajectory while maintaining operational efficiency.
Moreover, with Junnikkala’s products added to its portfolio, Stora Enso stands to bolster its wood product offerings significantly. This expansion is set to complement the existing product range, allowing the company to cater to a broader customer base and reinforcing its market position.
The increased capacity resulting from this acquisition is noteworthy, with Stora Enso's annual wood procurement in Finland projected to rise by approximately 1.7 million cubic meters. Additionally, the total sawmilling capacity is anticipated to see an incremental increase of 700,000 cubic meters, a development that highlights Stora Enso's commitment to scaling its operations in a sustainable and economically viable manner.
Ultimately, the strategic acquisition of Junnikkala aligns seamlessly with Stora Enso's corporate goal of driving growth through renewable materials. As a company rooted in the responsible management of forest resources, Stora Enso continues to underscore the importance of sustainability in its operational blueprint. This acquisition cements Stora Enso's commitment to leveraging forest resources to deliver renewable and eco-friendly products, paving the way for future innovations and contributions to a sustainable world.
