The new flatter and streamlined organisation will increase customer focus, drive operational efficiency with increased integration, reduce complexity, and enhance the group’s performance culture.
The Finnish paper giant said that, following the planned change, the group’s renewable packaging business will consist of four P&L responsible business areas accounting for approximately 60% of Stora Enso’s full year revenue (2024): Food Service and Liquid Board, Cartonboard, Containerboard, and Packaging Solutions.
It said each of these business areas offers a wide range of renewable fibre-based packaging materials, such as cartons, boxes, trays, cups, and bags for various industries such as food and beverage, e-commerce, pharmaceutical, and cosmetics.
The group’s remaining businesses, accounting for approximately 40% of Stora Enso’s full year revenue (2024), will continue to be divided into three P&L responsible business areas: Biomaterials, Wood Products, and Forest.
Stora Enso said that in addition to their respective businesses, they support the company’s renewable packaging products through wood sourcing and their supply of raw material.
To strengthen operational and supply synergies, sawmills and “building solutions” sites in the Nordics will operationally belong to their respective geographically closest board or pulp production site.
“Central European building solutions sites and sawmills will remain in the Wood Products business area. Customers of the Wood Products business area will continue to be served by its global sales and customer service network,” the company confirmed.
“The new planned organisation removes one management layer and represents a further decentralisation of P&L responsibility closer to customers and operations. As a consequence of the change, Stora Enso will have seven P&L responsible business areas.
“Within the business areas, there are a total of 21 P&L responsible business units. The businesses will be served by efficient group-wide functions.”
Hans Sohlström, president and CEO of Stora Enso, said: “Our planned new organisation has been carefully structured to maximise customer and business focus, operational efficiency and synergies, ensure the benefits of supply chain integration, and ultimately reflect our performance and results orientated culture.”
The new business area Food Service and Liquid Board will be led by Markku Luoto, Cartonboard by Andreas Birmoser, and Containerboard by Hannu Kasurinen.
All other business areas will continue under the current leadership: Packaging Solutions is led by Carolyn Wagner, Biomaterials by Johanna Hagelberg, Wood Products by Lars Völkel, and Forest by Tuomas Hallenberg.
The new organisational structure will be effective as of 1 July 2025. All changes are subject to co-determination negotiations and other potential legal procedures in all impacted countries.
Stora Enso said it will maintain its current external divisional reporting structure.
Alongside this announcement, the company’s results for Q1 2025, released today (25 April), showed that its sales increased by 9% to €2.36bn (£2.01bn), mainly due to higher prices and deliveries.
Adjusted EBIT increased, for the fourth consecutive quarter compared year-on-year, to €175m. Adjusted EBIT margin increased to 7.4%. The company said higher prices, volumes and positive impacts from net currency exchange rates and depreciations more than offset higher fibre costs.
The company’s new consumer packaging board line at the Oulu site in Finland started production ramp-up in March. The line is expected to reach EBITDA breakeven by the year-end 2025 and full capacity during 2027.
Stora Enso has also received regulatory approval from the competition authorities to proceed with the acquisition of Finnish sawmill company Junnikkala Oy, announced in October 2024. The transaction is expected to be finalised early next month.
Looking ahead, Stora Enso said it expects market demand to remain subdued and volatile, “affected by heightened macroeconomic and geopolitical uncertainty due to trade-related tensions, and lower consumer sentiment”.
The company’s share price was up 0.43% on yesterday’s close at the time of writing just before lunchtime today, to €7.98 (52-week high: €14.22, low: €7.10).
