The major investment project during 2004 was Skoghall Mill’s Energy 2005 project, which aims to secure the future base for board production and strengthen the mill’s energy supply. This will enable cost-effective production with low emissions in both the short and long term. The total investment will amount to EUR 211 million. The investment will reduce the oil consumption and increase electricity self-sufficiency.

The acquisition of Intercell announced in October 2004 is part of Stora Enso’s strategy of increasing its Packaging Boards operations in Eastern Europe. Intercell’s large share of the market and low cost base provide an excellent foundation for growth.

Growth strategy preferences

Economic development in Central and Eastern Europe is increasing demand for packaging, and corrugated packaging consumption is growing especially fast in Eastern Europe - annual growth there is estimated at 5–10%. Russia and Eastern Europe have been seen as key areas for development for the past ten years. Eastern and Central Europe are important markets, especially for corrugated packaging. As the corrugated business is by nature local, it is crucial to have local productions units in target markets to reach high regional market shares.

The aim is to make further acquisitions if suitable targets are found, while continuously improving the existing large mills and increasing profitability.