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          Stora Enso invests in cross laminated timber production in Czech Republic
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          CZECH REPUBLIC (News release) -- Stora Enso has decided to invest approximately EUR 79 million in a new production line for cross laminated timber (CLT) at its ?dírec sawmill in the Czech Republic. The investment will further enhance Stora Enso's position as a global provider of high-quality engineered wooden elements and as a market leader in CLT.

          Production is scheduled to begin during the third quarter of 2022. The estimated annual production capacity will be approximately 120 000 m3 after ramp-up. The investment is expected to generate annual sales of approximately EUR 70 million when run at full capacity and to meet the Wood Products division's profitability target of 20% operational return on operating capital (ROOC).

          "This investment enables us to accelerate our growth within the mass timber construction market. It is well in line with our strategic integrated mill concept. It will further improve our capabilities to offer a high-quality range of building solutions for our customers around the world. CLT is showing significant growth potential in the market, with characteristics that make it possible to build higher, lighter and yet stronger than ever before. With our well-proven building concepts and supporting digital tools, we intend to inspire and drive the construction industry towards a more sustainable future, built on renewable materials," says Lars V?lkel, Executive Vice President, Stora Enso Wood Products division.

          Construction is expected to start during the first quarter of 2021. Stora Enso invests in the latest technology, which, together with fully integrated production at the ?dírec sawmill, will provide customers with cost-efficient solutions and premium products. Integration with the existing sawmill will also add benefits in, for example, raw material and energy supply, and logistics. The ?dírec sawmill is favourably located close to the European markets of Stora Enso.

          The investment is estimated to increase the number of employees at the mill by approximately 110 FTEs. Stora Enso has received all required permits for the project.

          Currently, Stora Enso has three CLT production units with a total capacity of 270 000 m3: Gruv?n in Sweden and Ybbs and Bad St. Leonhard in Austria.

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