The Finnish packaging and paper giant’s €1bn investment in its Oulu mill in Finland is being financed, in part, by the new long-term bilateral loan. The loan features an amortising structure, with the final repayment anticipated in 2036, effectively lengthening the group’s debt maturity profile.

Stora Enso said the mill, which is expected to begin operations with a novel, converted consumer board production line in the first half of 2025, will be one of the most modern and cost-efficient production sites for packaging materials in Europe.

“The investment in Oulu supports our growth strategy in renewable, circular packaging by providing new volume for the growing packaging segment,” said Hannu Kasurinen, executive vice president of Stora Enso’s Packaging Materials Division.

“The wood fibre is sourced from sustainably managed forests in the Nordics, and the boards are designed to replace plastics in food and personal care packaging.”

Kaarlo Höysniemi, SVP group treasury, added: “This new loan with EIB will not only provide us with financial flexibility, but it also underscores our commitment to sustainable, profitable growth.

“Securing access to long-term capital from a variety of sources is a pivotal element of our strategy, as it enables us to invest in new growth opportunities.”

Stora Enso achieved full-year 2023 sales of €9.4bn, down 19.6% from €11.68bn a year earlier.