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July 25, 2018

Strong rise in earnings for Stora Enso’s Wood Products division

Strong rise in earnings for Stora Enso’s Wood Products division

Sales in Stora Enso's Wood products division increased 7.2%, or EUR 29 million to EUR 430 million. This was mainly due to improved prices and active mix management, the company stated.

Operational EBIT increased EUR 12 million, to a record high Q2 level of EUR 47 million, the highest since 2007. According to Stora Enso, this was driven by improved prices and mix, as well as growth from strategic investments, Murów sawmill in Poland and Varkaus laminated veneer lumber (LVL) line in Finland.

Stora Enso's Wood Products division financial results

The ramp-up of the LVL production at Varkaus Mill was completed during the quarter. The investment to a new cross laminated timber (CLT) unit at the Gruvön sawmill in Sweden is proceeding as planned. The production is scheduled to begin during the first quarter of 2019.

Stora Enso will invest approximately EUR 13 million to increase the sawmilling and planing capacity at Launkalne sawmill in Latvia. The start-up is expected to take place in phases during Q2–Q3/2019.

Also the company was selected as the provider of wooden material to several new building projects around the world. CLT will be supplied to 25 King Street in Brisbane, Australia, the largest wooden commercial office building in the world. The total floor area is 14 921 square metres covering 10 floors. Other massive wood projects, where Stora Enso is the chosen supplier include:

  • The Arts Centre at Sherborne Girls School, Dorset England, the final project in the school’s Growing for the Future development programme driven by multiple needs and aspirations,
  • Grand CARRE-Auchan, Lille France, 5 office buildings linked together including a first-floor carpark,
  • Sternäckerweg, Graz Austria, the second of a three-phase building project each phase including 100 new apartments,
  • Vestsiden Komplex, Kongsberg Norway, including a school, a sport hall and student homes,
  • Lapinmäki kindergarten in Helsinki, Finland.

About Stora Enso Wood Products division

Stora Enso's Wood Products division provides wood-based solutions for building and housing. The product range covers all areas of construction, including massive wood elements, wood components and sawn goods. Stora Enso also offer pellets for sustainable heating. The company's customers are mainly merchants and retailers, industrial integrators and construction companies.

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