The firm will spend €32m on its Skoghall Mill in Sweden to rebuild a fibre line in the sulphate pulp mill and its chemical recovery operations, to increase the pulp production capacity by 45,000 tonnes per year.
The project has begun and is expected to be completed in October 2014.
Stora Enso is also planning a feasibility study with the aim of converting the Varkaus Mill fine paper machine in Finland to produce virgin-fibre-based containerboard.
The feasibility study, which is expected to be completed in the first quarter of 2014, will evaluate the profitability of the project to manufacture containerboard at the site.
“This is an opportunity to take advantage of two market forces, where one can see a decreasing global market for paper but an increasing global market for board. It is an opportunity to grow in the containerboard market at competitive investment cost,” said Hannu Alalauri, SVP Packaging Solutions at Stora Enso Renewable Packaging.