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Stora Enso's CMD 2017 took place in London on 8 November. During the day, we discussed strategy and performance, and provided an in-depth review of three of our growth businesses - Consumer Board, Packaging Solutions and Biomaterials.
Check the highlights of the day in Twitter #StoraEnsoCMD
CEO Karl-Henrik Sundström presented Stora Enso’s road to success in the bioeconomy: “Our transformation strategy continues delivering sustainable profitable growth. With strategic growth investment, we are able to generate strong cash flow, while keeping our investment level in line with depreciations. Our drivers for accelerating renewable growth include intelligent packaging, biocomposites, future bio-chemicals, and building components and systems. Sustainable profitable growth is driving dividends, which are linked to long-term performance. We are well positioned for growth with strong market positions and we are developing further in the bioeconomy.”
In her presentation, Annica Bresky, EVP Consumer Board division, emphasised the division’s position as a strategic partner across the value chain. “Our growth opportunities are within liquid packaging board, folding box board and coated unbleached kraft board. China continues to be one of the fastest-growing markets driven by middle class expansion and urbanisation. Our growth engines are our Beihai Mill in China and our integrated mills in Finland and Sweden,” she said. “We see that our future is bolstered by innovation in renewable materials: micro-fibrillated cellulose (MFC), bio-barriers based on MFC and biocomposites.” She presented some of the division’s products targeting the most demanding end-uses on the market. “Our platform for growth is really strong,” she concluded.
Gilles van Nieuwenhuyzen, EVP Packaging Solutions division, introduced the division’s strategic roadmap. “Digitalisation is a driving force which we are using to leverage our business. Our strategy is based on growth in attractive product segments, innovation and customer value creation, and excellence in operations, supply chain and sourcing.” He also pointed out that the conversion of Varkaus Mill from fine paper to kraftliner already delivers better than promised. “We are able offer exciting, interesting packaging design and we have proof points that this can increase our customer sales,” he said.
Markus Mannström, EVP Biomaterials division, presented the division’s three focus areas. “Global trends enhance pulp growth, and we have the widest pulp portfolio in the market. We will focus on maximising value from eucalyptus pulp, and differentiating our Nordic pulp business by growing in fluff and dissolving pulp. The third pillar in our strategy are the new platforms for growth. They include improved pulp properties for existing products, developing new technologies for using wood fibre in textiles, non-woven and specialty papers, lignin, and bio-based chemicals replacing fossil-based materials.”
CFO Seppo Parvi gave and update on the KPIs which the group focuses on to be able to implement the strategy. “We have made successful growth investments, and have sustainable strong cash flow. Performance of the group has been increasing and for three quarters we have had a growing topline. Most importantly, we are growing in a profitable way, and have also been able to improve our balance sheet.”
Check the highlights of the day in Twitter #StoraEnsoCMD
