{"id":88801,"date":"2025-04-30T06:19:02","date_gmt":"2025-04-30T06:19:02","guid":{"rendered":"https:\/\/tin.happy-projects.ro\/stora-ensos-ceo-high-wood-prices-require-efficiency-and-high-value-products\/"},"modified":"2025-09-18T17:30:23","modified_gmt":"2025-09-18T17:30:23","slug":"stora-ensos-ceo-high-wood-prices-require-efficiency-and-high-value-products","status":"publish","type":"post","link":"https:\/\/www.timberindustrynews.com\/ro\/stora-ensos-ceo-high-wood-prices-require-efficiency-and-high-value-products\/","title":{"rendered":"Stora Enso\u2019s CEO: High wood prices require efficiency and high-value products"},"content":{"rendered":"

<\/span>Stora Enso's CEO Hans Sohlstr\u00f6m states that Finnish wood prices are at record highs and among the highest in the world, but are determined by the market economy.<\/p>\n

\u201cIn this operating environment, we have to cope and not complain,\u201d says Sohlstr\u00f6m. He lists the recipe for success: you need to produce the most highly processed, i.e. the most expensive, product possible, and in the most efficient integrated systems possible, where cardboard, pulp and mechanical forest industry work together. \u201cIt is a way to generate the highest possible added value for expensive wood.\u201d Sohlstr\u00f6m highlights the Oulu board mill as a good example. It produces consumer packaging board, which is the most expensive of the large forest industry products, and the production takes place in an efficient integrated facility. He estimates that the price per ton of Stora Enso's consumer packaging board, at 1,200-1,400 euros, is double that of pulp or printing paper, on average over cycles.<\/p>\n

Sohlstr\u00f6m doesn't say consumer packaging boards are less competitive, but the quality requirements are really tough. The production process is demanding, especially for folding boxboards, which are built from several different layers and different fibers. \u201cNot just anyone can do it and the threshold for getting into business is high.\u201d<\/p>\n

It's premature to talk about Russia<\/strong><\/p>\n

Prices for forest industry products are set on the world market, but wood prices have risen primarily in the Nordic and Baltic countries due to the end of imports from Russia. \"Nowhere else in the world has the same increase in wood prices been experienced. American competitors pay about a quarter of Finnish wood prices for their own raw materials at the factory gate.\"<\/p>\n

The general belief is that wood prices will remain high as long as Russian wood imports remain absent. Sohlstr\u00f6m dismisses speculation that Russian imports will begin as premature. \"We have very high quality standards, certification requirements, wood traceability requirements, which are part of what we offer to customers, and we have not considered starting to import wood from Russia.\"<\/p>\n

All sawmills in the North continue<\/strong><\/p>\n

The Junnikkala transaction has received approval from the competition authority. The transaction is scheduled to be completed in early May, when the integration of Junnikkala into Stora Enso will also begin. \u201cThe Junnikkala deal is being made to make the Oulu integration even more efficient.\u201d<\/p>\n

There has been a question in the air about what will happen to Junnikkala's smaller sawmills in Kalajoki and Oulainen and Stora Enso's old Veitsiluodon sawmill. \"Operations at the three sawmills in Junnikkala will continue as normal. The Oulu factory, the three sawmills in Junnikkala and the Veitsiluoto sawmill form one integrated entity.\"<\/p>\n

Sohlstr\u00f6m does not comment on whether the Junnikkala brand will survive, but notes that it is strong. The Junnikkala legacy, i.e. customer relationships, is to be cherished. The Junnikkala brothers Kalle and Veli-Matti will continue to work for Stora Enso.<\/p>\n

The organization is being downgraded<\/strong><\/p>\n

Stora Enso announced a new organizational model in connection with the results release.<\/p>\n

In the current, phased-out model, there are two management levels between CEO Sohlstr\u00f6m and the plant managers. In the reform, one of them will be eliminated and Sohlstr\u00f6m's core team will consist of business managers from seven business areas and four corporate functions.<\/p>\n

\u201cThe goal of the reform is to bring profit responsibility closer to customers and operational activities.\u201d<\/p>\n

Consumer packaging Stora Enso's way<\/strong><\/p>\n

When asked what Stora Enso's idea is, Sohlstr\u00f6m answers that it is to be a renewable packaging company.<\/p>\n

\"They generate around 60 percent of the group's turnover and three-quarters of the investments are directed towards them. But in order to be efficient in packaging materials, you also need to be strong in pulp and mechanical forest industry, sawmilling.\"<\/p>\n

The demand for consumer packaging board is strongly correlated with general consumer demand. The product is needed in almost everything found on department store shelves. \u201cIn the long term, this is a growing and very attractive market.\u201d<\/p>\n

Stora Enso's business idea is largely similar to Mets\u00e4 Board's. UPM, on the other hand, relies more on market pulp, paper and, if successful, also on bioprocesses. In the area of \u200b\u200bnew products, Stora Enso is already starting a business with a packaging foam similar to Styrofoam. The anode material for electric car batteries has received publicity, but commercialization is still awaited, as are many products with lower volume expectations.<\/p>\n

\u201cBuilding a new business takes time, that\u2019s realism.\u201d<\/p>","protected":false},"excerpt":{"rendered":"

Stora Enso’s CEO Hans Sohlstr\u00f6m states that Finnish wood prices are at record highs and among the highest in the world, but are determined by the market economy. \u201cIn this operating environment, we have to cope and not complain,\u201d says … Continue reading →<\/span><\/a><\/p>","protected":false},"author":1,"featured_media":49943,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"footnotes":""},"categories":[4716],"tags":[],"class_list":["post-88801","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-latest-trends"],"acf":[],"yoast_head":"\nStora Enso\u2019s CEO: High wood prices require efficiency and high-value products - Timber Industry News<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.timberindustrynews.com\/ro\/stora-ensos-ceo-high-wood-prices-require-efficiency-and-high-value-products\/\" \/>\n<meta property=\"og:locale\" content=\"ro_RO\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Stora Enso\u2019s CEO: High wood prices require efficiency and high-value products - 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