Stora Enso to invest EUR 1.5 million in Kopparfors Sawmill in Norrsundet 

Stora Enso Timber has decided to invest EUR 1.5 million in the Kopparfors Sawmill in Norrsundet, outside Gävle in Sweden. These investments will include efficiency improvements in the grading unit to boost the sawmill’s production capacity and installation of a machine stress grading unit for timber in the planing mill to enhance the product offering. The sawmill plans to take over operation of the pulp mill’s bark boiler, thereby securing the energy supply to the sawmill.

“In October 2007 Stora Enso announced that we intended to close the pulp mill in Norrsundet, and we have therefore been investigating what is needed to keep the sawmill in operation. At present, all thermal energy for drying timber and heating the sawmill premises comes from the bark boiler at the pulp mill. The most critical issue for the sawmill’s future has therefore been how to secure the supply of energy to the sawmill if the pulp mill is closed,” says Elisabet Salander Björklund, Executive Vice President Wood Products, Wood Supply and Pulp Supply.

“The completed studies show that it is possible to continue using the existing bark boiler, which has more capacity than is needed by the sawmill. Stora Enso has now decided to perform feasibility studies to see how a greater share of the boiler’s potential can be exploited in the future. In particular, we are looking at the opportunities to build a pellet plant and produce green electricity by using one of the existing turbines. By-products from Kopparfors Sawmill and our own nearby units can be used as a source of fuel and raw material for possible future pellets manufacturing” adds Peter Kickinger, head of Stora Enso Timber.

“The sawmill is in good condition, has continuously improved its earnings performance and has made numerous efficiency improvements in recent years. This decision provides a solution to the energy supply problem and, together with the planned investments, gives us a feasible platform for ongoing development of the sawmill operations. The decision will also enable us to secure a few jobs for operation of the boiler,” says Pierre Aggarwal, Mill Manager at the Kopparfors Sawmill.

The investments are scheduled for completion in December 2008.

For additional information, please contact:
Elisabet Salander Björklund, EVP Wood Products, Wood Supply and Pulp Supply
tel: +46 70 578 27 51

Peter Kickinger, EVP, Stora Enso Timber
tel. +43 1 269 7460 1375

Pierre Aggarwal, Mill Manager, Kopparfors Sawmill
Tel: +46 10 46 756 63

Stora Enso Timber provides customer-focused solutions to the construction and joinery industries and the wood products trade worldwide. Stora Enso Timber's annual net sales are EUR 1.8 billion and the total annual production capacity is 7.4 million m3 of sawn wood products, including 3.2 million m3 of value-added products. Stora Enso Timber employs 5 000 people in 28 mills and in its sales and distribution companies throughout the world.
Stora Enso Timber, Kopparfors Sawmill produces 300,000 m3 of sawn timber, of which 60,000 m3 is further processed. The mill employs 140 people.