Stora Enso Forest Products ensures the maximum synergy benefits are gained from integrating wood supplies to the sawmills and pulp mills. Wood raw material is a major cost and co-ordinating the wood supply as an entity greatly improves overall efficiency and value creation.

Stora Enso Forest Products has been actively pursuing this strategy in 2004 by strengthening its presence in all areas of operation and establishing a comprehensive wood supply system that makes it one of Europe’s leading and most competitive wood suppliers.

Expansion to secure supplies and growth

Wood supply markets are very tight, especially in Northern Europe, so Stora Enso is expanding wood sourcing and processing into new areas.

Russia is important to the Group as a supplier of wood raw material and a growth market for its products. Stora Enso has strengthened its Russian wood procurement operations, which can serve as a platform for future industrial expansion in Russia. Following acquisition of wood procurement companies in Russia in 2004, Stora Enso is looking to increase its own cutting rights to gain greater control of the wood supply chain and improve social and environmental performance and transparency.

Stora Enso is also developing a wood terminal network in Russia to acquire wood raw material and transport it efficiently to the mills. Stora Enso has several terminals in operation and intends to increase the network. The Group is following a stepwise strategy for expansion in Russia, aiming to keep risks in balance.

Wood supply operations have been increasing rapidly in 2003 and 2004 in the Baltic States, along with increases in manufacturing output. The next natural area for expansion for Wood Supply Europe is Poland, following acquisition of the Polish packaging producer Intercell in October 2004.

Stora Enso's procurement from different operating areas in 2004