HELSINKI (News release) -- Stora Enso secures wood supply for its Oulu packaging board site by acquiring Finnish sawmill company Junnikkala Oy. The acquisition, valued up to Euro 137 million, aims to ensure cost-efficient wood sourcing and bolster Stora Enso's wood products segment. Closing conditions include regulatory approvals, with completion expected by mid-2025.

Junnikkala Oy, a Finnish sawn timber producer, operates three sawmills, including a new facility near Oulu. This strategic purchase will enhance synergies, providing wood chips, pulpwood, and biomass for Oulu's packaging board site. Hans Sohlström, Stora Enso's President and CEO, emphasizes that the deal will support the start-up of the new packaging board line and improve operational efficiency.

The acquisition increases Stora Enso's annual wood procurement in Finland by 1.7 million m3 and adds 700,000 m3 of sawmilling capacity. Integration will enhance resource efficiency, reducing costs while balancing sawlog and pulpwood supply. Junnikkala's operations will merge with Stora Enso's Wood Products division, generating estimated annual synergies of Euro 15 million once fully operational.

Founded in 1960, Junnikkala employs 230 people, who will transition to Stora Enso following the acquisition. The deal solidifies Stora Enso's presence in the Baltic Rim wood market and boosts by-product supply for pulp and energy use at the Oulu site.