The Forest and Wood Products Day 2019 was held on 19 September and provided an update on our strategy, including a detailed review of Wood Products and Nordic forests. Around 80 investors, analysts and bankers registered for the event in Sweden. The programme continued next day with a forest logging site visit near Karlstad, Sweden and visit to our Gruvön mill.
In addition to the presentation from our CEO Karl-Henrik Sundström, the Investor day included presentations from Jari Suominen, EVP Wood Products division; Jorma Länsitalo, Head of Wood Supply; and CFO Seppo Parvi.
“We are leading the way in the bioeconomy”, highlighted Karl-Henrik Sundström. “Our raw material is renewable, reusable and fossil-free which means that we are in a very good position. With our forest holdings in Sweden and the new Forest division, we are moving from purely wood supply to forest management. Control of our own forest assets will give us an important competitive advantage in the bioeconomy.”
Jari Suominen, EVP Wood Products, gave an overview of the Wood Products strategy for growth. 80% of Wood Products business comes directly or indirectly from construction. There is a pressure on the construction market to change. Construction materials cause 11% of global carbon dioxide emissions. “Our materials, such as CLT can change the industry. We don’t want to be just part of the change, we want to lead the change”, he emphasised.
Jorma Länsitalo, Head of Wood Supply, explained how our new forest assets in Sweden and the recently-announced Forest division can contribute to Stora Enso’s business. “It all starts in the forest. Forests are not only the source for our raw material, today they are also deeply integrated in our value chain. We create additional value through competitive wood supply, innovation and sustainable forest management.” The new division also gives us the possibility to increase transparency of our operations.
Seppo Parvi talked about the reporting of the new Forest division and explained the rationale behind the decision. “It is about giving optionality in wood supply. It enhances an integrated value chain, secures wood availability, and gives tactical flexibility. The Swedish forest holdings cover 70% of the wood supply needs of our mills in middle Sweden.”
On Friday 20 September, the programme continued with visits to a forest logging site and Gruvön mill. The guests were able to see the close link between wood procurement and Wood Products business.
Click here to read about the new Forest division and Stora Enso's capex estimate for 2020.