Stora Enso is known to be the world's leading trader of packaging, biomass, wood building materials and paper, as well as one of the world's largest private forest owners. But in June last year, due to the long-term reduction in raw materials, the increase in the cost of timber and low profitability, the closure of the NPI sawmill in Estonia had to be announced.
Recently, it was reported that Stora Enso has agreed to sell the Nappi sawmill in Estonia to local planer producer Puidukoda. "We are delighted to have reached an agreement with Puidukada, which has the ability to ensure the long-term development of the business. ”
It is reported that the plant has been in operation for about 30 years, with an annual production capacity of 50,000 m of sawn timber, 180,000 m of deep-processed timber, and 250,000 tons of wood pellets provide 100 jobs for the local area. However, the deal only includes all land and buildings and equipment related to wood processing, and the rest of the equipment from the NPI plant has now been shipped to other Stora Enso sawmills.
In recent years, it has not been uncommon for sawmills to close due to an imbalance between supply and demand, even Stora Enso, a major player in the industry. Stora Enso's strategy has always been to maintain its leading position in the market, whether it is to close the processing plant or to local manufacturers, it is based on the decision to improve the long-term competitiveness and profitability of the company, this does not mean that Stora Enso has completely withdrawn from the market in the region, and I believe that with mature experience and sufficient capital flow, Stora Enso will regain market share and increase the number of timber.