Securing a cost-competitive manufacturing base
The Baltic States and Russia are major emerging sources and markets for competitive high-quality wood products, and important areas for wood raw material procurement for the Group’s other production sites, especially in Finland. Intensifying competition emphasises the need to secure a cost-competitive manufacturing base that will support expansion in Central and Eastern Europe.

Stora Enso Timber’s strategy is to set up a competitive sawmilling base in Russia with the initial sawmill investments in 2002 in the Karelia and Novgorod regions. A competitive sawmilling base in the Baltic States is being developed through the acquisition of Sylvester and further greenfield investments. With the acquisition, Stora Enso will get five modern softwood mills and add 20% to the annual wood products capacity. Stora Enso is keen to locate further new production capacity close to these raw material sources and markets, and recent investments provide a good platform for further growth. 

Further-processing according to customers’ needs
Markets and end-users favour more advanced, further-processed and engineered products. The division has responded with a vast growth and turnaround programme in all operating regions over the past five years. Streamlining of production assets continues, with production efficiencies sought through mill specialisation and expansion of further-processing capacity and the share of customised products.