Stora Enso is continuing to increase wood procurement for its expanding Oulu operations in Finland, but the company says high raw material costs are becoming a growing challenge for profitability.<\/p>\n
Speaking at the \u201cForests and Money\u201d reader event organized by Mets\u00e4lehti in Oulu, Matti Lielahti, Director of Stora Enso's Oulu business unit, said the company\u2019s long-term commitment to Oulu is now entering a new phase following major investments in board production and sawmilling capacity.<\/p>\n
\u201cThere is a need for wood 24\/7, 365 days a year,\u201d Lielahti said. \u201cOur operations run largely in three shifts and a steady flow of wood is extremely important to us.\u201d<\/p>\n
According to Lielahti, the Oulu business unit, formed last summer, is now fully operational and consumes around 3.5 million cubic metres of pulpwood and two million cubic metres of logs annually.<\/p>\n
Pine represents roughly 75% of the company\u2019s wood demand in Oulu, followed by spruce at 16% and birch at about 10%.<\/p>\n
The company is currently ramping up both its sawmill operations and the new consumer board line, increasing demand for raw materials across northern Finland.<\/p>\n
At the same time, Lielahti acknowledged that rising pulpwood prices are putting pressure on margins across the forest industry.<\/p>\n
\u201cWe are on a growth curve in wood procurement,\u201d he said. \u201cBut what all forest industry companies are saying now is that raw material prices are really high. That creates a major challenge in maintaining profitable business.\u201d<\/p>\n
Stora Enso has invested approximately EUR 1.7 billion in Oulu in recent years, one of the largest industrial investments in the company\u2019s modern history.<\/p>\n
According to Lielahti, the decision to convert production from paper to consumer board proved correct as demand for packaging materials continued to strengthen.<\/p>\n
\u201cWe hit the nail on the head when we changed the production direction from paper to cardboard,\u201d he said. \u201cWe now have two strong board machine lines. We have not come to Oulu for years, but for decades.\u201d<\/p>\n
For forest owners in northern Finland, the investment means a broader range of assortments from surrounding forests can now be utilized at the Oulu mills.<\/p>\n
Lielahti also highlighted the importance of Nordic wood quality, particularly in export markets such as Japan, where demand for wood construction materials remains strong.<\/p>\n
\u201cThe Nordic fiber produces really strong end products,\u201d he said. \u201cWe are at the top level when it comes to product strength.\u201d<\/p>\n
Q1 results weakened as geopolitical tensions and Oulu ramp-up affected profitability<\/strong><\/p>\n Stora Enso\u2019s comments in Oulu came alongside weaker first-quarter financial results published on May 7.<\/p>\n The company reported Q1 2026 sales of EUR 2.36 billion, broadly unchanged from a year earlier, while adjusted EBIT fell 9% to EUR 159 million.<\/p>\n According to Hans Sohlstr\u00f6m, profitability was affected by continued weak market conditions, negative currency effects and the ongoing ramp-up of the new consumer board line in Oulu.<\/p>\n Stora Enso also warned that geopolitical tensions, particularly the conflict in the Middle East, are expected to increase costs during 2026, especially for logistics, chemicals and energy.<\/p>\n The company said uncertainty increased noticeably toward the end of the quarter following the outbreak of the Iran conflict, with the impact expected to become more visible during the second quarter.<\/p>\n The Oulu board line ramp-up is expected to continue affecting profitability in the near term, although production volumes are gradually increasing and full operational capacity is expected during 2027.<\/p>\n Stora Enso added that preparations continue for the planned separation of its Swedish forest assets business into a new publicly listed company expected during the first half of 2027.<\/p>","protected":false},"excerpt":{"rendered":"","protected":false},"author":1,"featured_media":98658,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"footnotes":""},"categories":[4713,5204],"tags":[],"class_list":["post-98657","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-companies-in-the-timber-industry","category-daily-news"],"acf":[],"yoast_head":"\n