International Paper to Explore Strategic Options for Ownership Interest in Ilim Group

It has been nearly 3 years since our last increase and over that period of time we have experienced rising prices on paper and boxes 9% as well as other raw materials, components & labor rates. We are persistent in our efforts to improve our processes, however the price escalations have exceeded productivity gains. We must raise our prices 3-1/2% effective on all orders placed on or after 02/01/2021.

Stora Enso has decided to discontinue the divestment process for its Beihai packaging board production site and forestry business, announced in December 2022. Stora Enso is of the view that the value in own use of the assets exceeds the achievable transaction value, and has therefore chosen to retain these operations within the Group. Stora Enso’s strategic ambition is to build on its global leading position in the fiber-based packaging market. The business of the Beihai site will be developed through a continued focus on operational excellence, cost optimisation, and product development. By adjusting the product mix to increase the share of liquid packaging board and other premium grades, the Beihai site will strengthen Stora Enso’s leading position as a global supplier. No significant capital expenditure is expected in the mid-term.

Now that the company has replaced its two oil-fired lime kilns with a biofuel-fired lime kiln, SCA Containerboard can claim to be the first kraftliner manufacturer with fossil-free industrial processes. The new lime kiln, part of the chemical recycling process in pulp production, was commissioned at the end of November. The construction of a new lime kiln is part of the major investment in the Obbola Paper Mill, where SCA is expanding to increase kraftliner production and meet the company’s goal for fossil-free manufacturing. - The aim of our investment in a new lime kiln is to get rid of fossil oil, as well as to meet the need for expansion, says Pär Micael Samuelsson, project manager for the lime kiln subproject. - We will eliminate 8,000 cubic metres of oil per year. Had we continued to use the two oil-fired kilns, we would have needed an additional 2,000 cubic metres to achieve the necessary sulphate pulping. Now we don’t need this and we have completely eliminated oil consumption, he explains.