||STOCK EXCHANGE RELEASE
March 7, 2007
Stora Enso expands its corrugated
packaging business in Eastern Europe and Russia
Stora Enso will expand its corrugated packaging business in Eastern Europe and Russia by constructing new plants at Balabanovo in Russia and Komarom in Hungary, and by expanding the existing plant at Lodz in Poland. The corrugated packaging markets in Eastern Europe and Russia are developing rapidly. Stora Enso's expansions are targeted at meeting customers' growing demand for value-added corrugated packaging. These developments are in line with Stora Enso's strategy of growing its packaging business and its operations in new growth markets.
Offset printed corrugated packaging plant in Russia
Stora Enso will build an offset printed micro-flute packaging plant at Balabanovo in Russia. Demand for offset printed corrugated packaging is increasing briskly in Russia. Stora Enso's aim is to expand the strong position the Group has established in the market. With this investment, Stora Enso will be the first foreign packaging group to invest in modern offset printed corrugated packaging production in Russia. The plant will be built at the existing Balabanovo site to benefit from synergies. The investment in the Balabanovo plant will be approximately EUR 23 million. The project will start in the second quarter of 2007 and is scheduled to be completed in the second quarter of 2008.
Offset printed corrugated packaging plant in Hungary
Stora Enso will also build an offset printed micro-flute packaging plant at Komarom in Hungary. Instead of expanding the current site at Paty, a new plant will be built at Komarom closer to a key customer, to further enhance service levels. The investment in the Komarom plant will be approximately EUR 15 million. The project will start in the first quarter of 2008 and is scheduled to be completed in the third quarter of 2008.
Offset printed corrugated packaging products are used in consumer packaging for the electronics, food and beverage industries.
Heavy-duty corrugated box plant in Poland
Stora Enso will establish heavy-duty box production capacity at Lodz in Poland. This investment responds to customer needs by offering new types of product to the Polish market. The new production unit will strengthen the Group's position and coverage as a supplier of value-added products. The investment in the new plant will be approximately EUR 8 million. The project is scheduled to be completed in the first quarter of 2008.
About Stora Enso
Stora Enso Packaging Boards consists of the Consumer Boards, Speciality Papers and Industrial Packaging business areas. The Industrial Packaging business area produces corrugated packaging, cores and industrial paper. Corrugated packaging includes sales packages for food and non-food products, transport packages, display stands, corrugated sheets, paper roll and sheet packing systems, and packaging machines. Production units are located in Finland, Sweden, Russia, Latvia, Estonia, Lithuania, Hungary and Poland.
Veli-Jussi Potka, Senior Vice President,
Stora Enso Packaging Boards, Industrial Packaging, tel. +358 2046 21486
Pekka Pöllänen, Managing Director,
Stora Enso Packaging Oy, tel.+358 2046 27300
Kari Vainio, Executive Vice President,
Corporate Communications, tel. +44 7799 348 197
Keith B Russell, Senior Vice President, Investor Relations, tel. +44 7775 788 659
Vice President, Investor Relations and Financial Communications, tel. +358 2046 21242
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