Growing Tissue Capacity

Stora Enso has divested its three corrugated packaging plants in Russia. The Company’s Lukhovitsy, Arzamas and Balabanovo packaging plants have been divested to local management. Stora Enso’s assessment is that due to the uncertainties in the Russian market, local ownership and operation will provide a more sustainable long-term solution for these businesses and their respective employees. The transaction will have no material impact on Stora Enso’s annual sales and Operational EBIT. Due to reduced business prospects for these businesses, an impairment loss of EUR 35 million was recorded in the first quarter result. The additional loss on the transaction under IFRS will be approximately EUR 55 million, consisting mainly of currency translation adjustments to be recorded at the closing date. The expenses are considered as items affecting comparability. The divested sites are located in Lukhovitsy, Arzamas and Balabanovo employing approximately 620 people and have a total annual capacity of 395 million m² of corrugated packaging.

Stora Enso is extending its packaging offering with a new portfolio of bio-based foams from wood. The products are fully recyclable and can be used for protective and thermal packaging. Lightweight wood foams address the need for climate-friendly, renewable and circular cushioning materials in inner packaging. Stora Enso’s offering consists of Fibrease™ by Stora Enso and Papira® by Stora Enso. Both foams come with versatile technical and sustainability properties, and customers can select a suitable foam based on their specific packaging requirements. The foams can be used for protecting fragile goods and are optimal for thermal packaging of temperature sensitive products. Fibrease is commercially available now, while the pilot plant for producing Papira has started operations at the Fors site in Sweden, following the investment announced in August 2020. Fossil-based packaging is a major contributor to pollution, accounting for 40% of the world’s plastics. With Fibrease and Papira, Stora Enso now introduces renewable and climate-friendly alternatives to fossil-based packaging protection. The bio-based foams come from certified wood and are recyclable in paper recycling streams.

Sonoco plans to further expand Sonopost® cornerpost manufacturing in Europe. A new protective packaging production facility is set to open in Bursa, Turkey in November, one year after Sonoco established the first Sonopost® operation in Sochaczew, Poland. “Growing demand for our proprietary Sonopost technology created the need for a second production facility,” said Adam Wood, Vice President and General Manager of Global Paper Products in Europe. “Our protective packaging design team is working hard with our customers who are aligned with us in creating fully sustainable, paper-based packaging that protects and preserves both their product and our planet for generations to come.”