Stora Enso has announced an acquisition agreement to purchase 100% of Finnish sawmill company Junnikkala Oy.
This move, valued at up to EUR 137 million, strengthens Stora Enso's strategic wood supply chain, supporting its packaging board production site in Oulu, Finland, and enhancing its wood products business.
The acquisition, anticipated to finalize in the first half of 2025 pending regulatory approvals, is designed to secure an efficient, long-term raw material supply for Stora Enso's operations in Oulu. Junnikkala Oy’s three sawmills, including a newly established high-tech facility located just 10 kilometers from the Oulu site, will provide consistent supplies of wood chips, pulpwood, and biomass to the mill. With this addition, Stora Enso expects to boost its annual wood procurement in Finland by about 1.7 million cubic meters and increase its sawmilling capacity by approximately 700,000 cubic meters.
According to Hans Sohlström, Stora Enso’s President and CEO, the acquisition aligns with Stora Enso’s ongoing efforts to streamline operations and reduce costs. “This acquisition will establish a solid foundation for our wood procurement,” Sohlström stated, emphasizing that the integrated supply chain will enhance operational efficiency, optimize resource use, and strengthen their presence in the Baltic Rim wood market.
Junnikkala’s workforce of 230 employees will transition to Stora Enso, while the company’s established sawmill infrastructure will support sustainable growth and maximize output for domestic and international markets. This acquisition marks a notable step for Stora Enso, reflecting its commitment to fostering a circular economy and sustainably sourced forestry practices.
As part of Stora Enso’s Wood Products division, Junnikkala’s sawmills will help fuel synergies within the Group’s Forest division, potentially generating EUR 15 million annually in cost savings once the integration is complete. The move also reduces Finland's reliance on imported pulpwood and packaging materials, increasing self-sufficiency in these essential resources by more than 30%.
About Stora Enso
Stora Enso is a major player in renewable solutions for packaging, biomaterials, and wood construction, and is among the world’s largest private forest owners. With 20,000 employees globally and sales of EUR 9.4 billion in 2023, the company is listed on both Nasdaq Helsinki and Nasdaq Stockholm.
About Junnikkala Oy
Founded in 1960, Junnikkala Oy is a prominent Finnish sawmill company with a focus on sustainable wood products for construction and export markets.
This acquisition represents a significant step for both companies, supporting Stora Enso’s expansion in eco-friendly production while bolstering Finland's forestry sector.
