Stora Enso acquires Finnish sawmill Junnikkala Oy to secure wood supply for Oulu site

Posted on October 29, 2024   |  

Stora Enso plans to acquire 100% of Junnikkala Oy, a Finnish sawmill company, to ensure a cost-effective wood supply for its packaging board site in Oulu and to grow its wood products division.

Junnikkala manufactures sawn timber and processed wood products for domestic and export markets, operating three sawmills in Finland, including a new facility located less than 10 kilometers from Stora Enso’s Oulu site.

This acquisition will enhance Stora Enso’s wood supply chain and improve its sourcing of sawlog and pulpwood in the Baltic Rim wood market.

Stora Enso will increase its annual wood procurement in Finland by 1.7 million m³ and raise its total sawmilling capacity by 700,000 m³.

The company will incorporate Junnikkala’s sawmill operations into its Wood Products division and include Junnikkala’s wood procurement in the Forest division.

Stora Enso expects to achieve annual synergies of around EUR 15 million once the new Oulu sawmill is fully operational, with no impact on its existing sawmills.

Junnikkala recorded EUR 115 million in sales for 2023 (compared to EUR 141 million in 2022), and all 230 of its employees will join Stora Enso.