Stora Enso consists of six divisions: Packaging Materials, Packaging Solutions, Biomaterials, Wood Products, Forest and Paper. Our customers include the packaging, joinery and construction industries as well as publishers, printing houses and paper merchants.
The ambition of Packaging Materials division is to be a global leader in circular economy with our high-quality renewable packaging materials based on both virgin and recycled fiber. Addressing the needs of today’s eco-conscious consumers, we help customers and brand owners to find the best material for their packaging and to replace fossil-based materials with low carbon footprint, renewable and recyclable alternatives. A wide selection of barrier coatings enables the design and optimisation of packaging for various demanding consumer and industrial packaging end uses.
Market growth: 9 Mt in 2014-2021 Position: #1 in LPB, FSB and CUK in the world or Europe. High quality SC fluting 1-3%, Kraftliner 2-3% excl. North America.
Strategy: Expansion of relative market share in profitable niches in consumer board business and growth on the fluting and kraftliner market.
Competition: In consumer board products, Stora Enso has a strong base in Europe and competes with companies like BillerudKorsnäs, Metsä Board and Iggesund. Outside of Europe, the main competitors are Klabin, Evergreen, Georgia-Pacific and International Paper. In containerboard products, the company competes mainly with Mondi, Prinzhorn, BillerudKorsnäs, SCA, SAICA, International Paper and WestRock.
Packaging Solutions division develops and sells world class fiber-based packaging products and services. We constantly innovate and find new ways to replace fossil-based packaging with renewable, eco-friendly alternatives. Our high-end packaging solutions are used by leading customers and brands across multiple industries.
Market growth: Growth opportunities following the growing e-commerce sector as well as the trend to replace plastics with renewable materials.
Strategy: Selective profitable growth
Competition: The Packaging Solutions division is very strong in corrugated packaging in the regions it is active: the Nordics, Baltics, Poland and Russia. These markets are fragmented, with the main competitors being Smurfit Kappa and DS Smith.
Biomaterials division offers a wide variety of pulp grades to meet the demands of paper, board, tissue, textile and hygiene product producers. We also develop new ways to maximise the value extractable from the wood as well as other kinds of lignocellulosic biomasses. The extracted sugars and lignin hold potential for use in a range of applications.
Market growth: 2.4% or 1.5 Mt/year, fastest growth in textiles (+3%) and hygiene (3.6%) Position: Widest pulp grades portfolio, #1 in Europe in fluff Strategy: Strengthening current business and creating new profitable growth
Competition: Directly, the Biomaterials division competes with other pulpmakers like UPM, Metsä Fibre, Södra, Fibria (partner in Veracel), Eldorado, CMPC, Arauco (partner in Montes del Plata) and Suzano. In terms of potential new markets, the Biomaterials division will face competition from biotechnology and biochemical companies as well as the chemical industry.
Wood Products division provides versatile wood-based solutions for building and housing. Our product range covers all areas of construction, including massive wood elements, wood components and sawn goods. We also offer pellets for sustainable heating. Our customers are mainly merchants and retailers, industrial integrators and construction companies.
Market growth: Global sawn softwood 2-3%, European new construction 3.5% Position: #1 in Europe and #4 in the world in supplying wooden construction material
Strategy: Accelerating growth
Competition: With its stature and reach, Stora Enso is a significant global player in wood products. Competition is primarily on a local level for the Wood Products division, from manufacturers of construction and interior decoration materials to companies operating sawmills and working in the wood industry.
The new Forest division, which started operations in the beginning of 2020, includes Stora Enso’s Swedish forest assets and the 41% share of Tornator with the majority of its forest assets located in Finland. The division also includes wood supply operations in Finland, Sweden, Russia and the Baltic countries. The division’s key focus areas are sustainable forest management, competitive wood supply to Stora Enso’s mills and innovation. As a major player in the bioeconomy, access to wood is critical for Stora Enso. Today, Stora Enso is one of the biggest private forest owners in the world.
Paper division provides best-in-class paper solutions for print media and office use. The wide selection covers papers made from virgin wood and recycled fibres. Our main customer groups include publishers, retailers, printing houses, merchants, converters, and office suppliers. We create value for our customers by providing competitive products and services that meet their quality and sustainability requirements.
Market: Declining Position: #2 in Europe
Strategy: Maximum cash generation
Competition: In Division Paper, we compete with other major European and global papermakers, such as UPM, Sappi and Mondi, not just in the quality and range of our products, but with the efficiency and sustainability of our operations.
Sales, EBITDA margins, EBIT margins and ROOC
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