In February Stora Enso announced its intention to upgrade and modernise the paper machine and increase sheeting capacity at its fine paper mill in Suzhou, China. The investments total EUR 38 million and the project will be completed in September 2005.

• In April Stora Enso Timber inaugurated its second sawmill in Russia in the village of Nebolchi in the Novgorod Region. The total investment was EUR 10.3 million and the full production capacity of 100 000 cubic metres will be reached by the end of 2005. The mill employs fifty people.
• In September Stora Enso finalised the acquisition of the Dutch paper merchant Scaldia Papier B.V. from International Paper. Scaldia Papier, which has 180 employees and had net sales of EUR 109 million in 2003 from a sales volume of
  55 000 tonnes of paper, becomes part of the Stora Enso Merchants division (Papyrus). The debt free transaction value was EUR 30 million.
• In October Stora Enso divested its majority shareholding in PT Finnantara Intiga, which owned the Finnantara plantation in West Kalimantan, Indonesia, to Global Forest Ltd., which is part of the Sinar Mas Group. The book value of the plantation was USD 26 (EUR 21) million.
• In December Stora Enso acquired 66% ownership of the Polish packaging producer Intercell S.A. from private shareholders and the International Finance Corporation.

Enhancing logistics

During 2004 Stora Enso started a project called the North European Transport Supply System (NETSS). The aim is to create a next-generation transport system, a single joint supply chain for products from Stora Enso’s mills in Sweden and Finland. The system, to be implemented during 2005–07, will enhance cost efficiency and improve customer service. When fully implemented, NETSS is expected to generate approximately 15% cost savings compared with the current level. The system will also serve as a platform for further development of Stora Enso’s transport and distribution services.