{"id":6881,"date":"2025-05-02T09:14:42","date_gmt":"2025-05-02T13:14:42","guid":{"rendered":"https:\/\/www.packagingindustrynews.com\/?p=6881"},"modified":"2025-05-02T09:14:42","modified_gmt":"2025-05-02T13:14:42","slug":"stora-enso-finalises-purchase-of-finnish-sawmill-firm-junnikkala","status":"publish","type":"post","link":"https:\/\/www.packagingindustrynews.com\/?p=6881","title":{"rendered":"Stora Enso finalises purchase of Finnish sawmill firm Junnikkala"},"content":{"rendered":"


\n<\/p>\n

\n
\n
\n \n <\/picture>
By integrating Junnikkala\u2019s operations into its Oulu site, Stora Enso aims to meet growing demand for fibre-based packaging. \/ Credit: Grand Warszawski via Shutterstock<\/figcaption><\/figure>\n<\/p><\/div>\n

Stora Enso has completed its acquisition of Junnikkala Oy, a Finnish sawmill company, following an agreement first announced in October 2024.<\/p>\n

The deal, valued at up to \u20ac137 million, strengthens Stora Enso\u2019s wood supply chain and increases its sawmilling capacity significantly.<\/p>\n

The acquired sawmills will now operate as part of Stora Enso\u2019s site in Oulu, where a new packaging board machine is currently scaling up production.<\/p>\n

The integration is designed to improve operational efficiency and ensure a steady supply of raw material for the company\u2019s growing packaging business.<\/p>\n

Increased production and supply chain efficiency<\/h2>\n

The acquisition will raise Stora Enso\u2019s annual wood procurement in Finland by approximately 1.7 million cubic metres.<\/p>\n

At the same time, it will expand the group\u2019s sawmilling capacity by around 700,000 cubic metres, offering a broader product range within its wood products division.<\/p>\n

One key aspect of the deal involves Junnikkala\u2019s new sawmill in Oulu, which is expected to be a central driver of long-term operational benefits.<\/p>\n

Once fully running, the facility is forecast to contribute about \u20ac15 million in annual cost synergies.<\/p>\n

Performance-based valuation structure<\/h2>\n

While the total enterprise value of the deal is up to \u20ac137 million, a portion of the payment depends on the new sawmill achieving certain production targets.<\/p>\n

This conditional structure ties the final cost of the acquisition to the future performance of the site.<\/p>\n

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.<\/p>\n

Strategic move in wood processing sector<\/h2>\n

The acquisition forms part of Stora Enso\u2019s broader strategy to strengthen its position in the wood processing and packaging sectors.<\/p>\n

With increased production capacity and improved access to raw materials, the company aims to enhance its competitiveness in the growing fibre-based packaging market.<\/p>\n

<\/p>\n

<\/p>\n

\n