Stora Enso acquires Junnikkala Oy in €137 million deal to enhance timber production in Oulu

Stora Enso has acquired 100% of the shares of sawmill and processing company Junnikkala Oy. Junnikkala operates sawmills in Oulu, Kalajoki, and Oulais. Earlier this year, the company completed a new sawmill in Oulu, with an investment of around €90 million, capable of producing up to 350,000 cubic meters of timber annually.

The transaction is valued at up to €137 million, with part of the payment contingent on achieving specific production targets. The deal is expected to close in early next year. According to Stora Enso, the new sawmill in Oulu will particularly benefit the company’s packaging paper mill located there, along with the new production line.

Stora Enso’s CEO, Hans Sohlström, stated last week that this investment is projected to increase domestic wood demand by approximately one million cubic meters annually. The acquisition will strengthen wood procurement for the Oulu facility. Stora Enso estimates that its annual wood sourcing in Finland will increase by around 1.7 million cubic meters, while its sawing capacity will grow by about 700,000 cubic meters.

As a result of the acquisition, Junnikkala’s sawing operations and wood procurement organization will be integrated into Stora Enso. Additionally, approximately 230 employees from Junnikkala will transition to Stora Enso’s workforce.