The future of packaging is circular and needs to be underpinned by solutions that have a net positive impact on both climate and biodiversity. This future is taking shape in the northern Finnish city of Oulu, where Stora Enso laid the foundation stone for a new paperboard production line on May 30.

Stora Enso believes that renewable materials will shape the future of circular packaging. In this future, plastics will be replaced by renewable materials, all packaging materials will be recyclable, and low emissions and high quality standards will be harmonized.

In order to make this future a reality, we are building a new high-capacity paperboard production line in Oulu by 2025. The city is located in northern Finland and has about 200,000 inhabitants. Upon completion of the project, the new facility will be able to produce up to 750,000 tonnes of renewable packaging material from well-managed northern forest fibres. The new capacity will provide our customers with more sustainable food and drink packaging options as it allows for the utilisation of renewable materials and promotes circular design principles: bio-based, recyclable, low carbon and offers an alternative to plastic.

Andreas Birmoser, Commercial Leader of Stora Enso, Head of the Consumer Board business, said: "This investment is at the heart of our growing packaging business. Paperboard is a versatile and growing variety, and we already have a deep understanding of our customers' needs and desires. These new materials support alternative plastic solutions while also growing in their current traditional uses."

Here are six reasons why Oulu has been chosen as Stora Enso's future packaging hub:

Demand: The global demand for sustainable packaging materials is increasing rapidly. Forecasts show that the global consumer panel market will reach 11 million tons by 2030, and demand for consumer panels will remain strong in key packaging applications, especially in the frozen and refrigerated food sector.

Northern fibres: Thanks to our long tradition, we are able to provide our customers with the best and highest quality fibres from the northern forests. Northern Finland has extensive forest cover, with about 86% of the land covered by forests. In addition, the forest is carefully managed in accordance with a third-party verified certification program to ensure the long-term health of the forest.

Location: Oulu region is an excellent location for raw materials, with ample potential for available wood resources. In addition, the proximity of the deep sea port ensures efficient logistics, while its status as an important university town facilitates access to qualified personnel. Stora Enso has been making paper at the plant since 1990 and is currently operating a brand new packaging materials production line at the same facility, where the new production line will also land.

Factories: Our advanced production lines will be based on renewable energy and offer flexible production setups. This investment is fully consistent with Stora Enso's commitment to sustainability. It will support recycling by further improving the recycling performance of the Packaging Materials segment's product portfolio. Total primary and secondary GHG emissions from the Oulu site will remain low as they have already been reduced by 80% during the first conversion in 2021.

Products: With the latest technological equipment from Oulu, the production line will be able to combine different fibre and paste types to create unique products for the food and beverage packaging market. Thanks to Stora Enso's innovative FiberLight Tec? technology and selected raw materials, the panels produced at the plant will be light and strong. In addition, these materials will offer exceptional high yields, visual properties and printability, which will be unique in the market.

Expertise: Skilled and knowledgeable personnel on the Oulu site will benefit our customers. Stora Enso has a long tradition in Oulu, having established its first plant as early as 1935, and the site has been engaged in paper manufacturing since 1990. Stora Enso is currently operating a brand new packaging materials production line at the same plant, where new production lines will be installed. The project will create approximately 300 new jobs in the plant and support s, in addition to approximately 1,500 indirect jobs.