Stora Enso has completed its acquisition of Junnikkala Oy, a Finnish sawmill company, following an agreement first announced in October 2024.
The deal, valued at up to €137 million, strengthens Stora Enso’s wood supply chain and increases its sawmilling capacity significantly.
The acquired sawmills will now operate as part of Stora Enso’s site in Oulu, where a new packaging board machine is currently scaling up production.
The integration is designed to improve operational efficiency and ensure a steady supply of raw material for the company’s growing packaging business.
Increased production and supply chain efficiency
The acquisition will raise Stora Enso’s annual wood procurement in Finland by approximately 1.7 million cubic metres.
At the same time, it will expand the group’s sawmilling capacity by around 700,000 cubic metres, offering a broader product range within its wood products division.
One key aspect of the deal involves Junnikkala’s new sawmill in Oulu, which is expected to be a central driver of long-term operational benefits.
Once fully running, the facility is forecast to contribute about €15 million in annual cost synergies.
Performance-based valuation structure
While the total enterprise value of the deal is up to €137 million, a portion of the payment depends on the new sawmill achieving certain production targets.
This conditional structure ties the final cost of the acquisition to the future performance of the site.
Stora Enso has indicated that this setup will help ensure that expected efficiency gains and output targets are met before the full transaction value is realised.
Strategic move in wood processing sector
The acquisition forms part of Stora Enso’s broader strategy to strengthen its position in the wood processing and packaging sectors.
With increased production capacity and improved access to raw materials, the company aims to enhance its competitiveness in the growing fibre-based packaging market.
