- Stora Enso to convert Oulu plant to make circular and recyclable packaging for foods and personal care.
- EIB credit helps fight major source of global pollution by reducing reliance on plastics.
- Upgrades of Oulu site also to foster economic vitality in Northern Finland.
The European Investment Bank (EIB) is extending a €435 million credit to forestry company Stora Enso so it can produce greener packaging for foods and personal care products. The loan is for a major upgrade of Stora Enso’s manufacturing site in Oulu, where the company already invested €1 billion euro in reusable, fiber-based, and recyclable packaging production for consumer goods.
The new production line will allow Stora Enso to offer its worldwide network of clients an affordable substitute for packaging made of plastic, which is derived from fossil fuels that cause climate change and often ends up polluting soil, oceans and rivers globally.
“This loan is a major step towards a plastic-free world, with an economy based on innovation and built on a green, carbon-neutral, sustainable and circular model,” said EIB Vice-President Thomas Östros. “Solutions offered by Stora Enso prove that the green economy is fully capable of creating growth, development and jobs. We are very proud to support European innovation that benefits global climate action, improves environmental protection and enhances the economic sustainability.”
By supporting a major bioeconomy project in Oulu, the EIB is also bolstering the competitiveness of EU industry, fostering economic growth and development opportunities in Northern Finland and strengthening the economic and social cohesion of EU regions.
“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,” said Kaarlo Höysniemi, Senior Vice-President of Group Treasury at Stora Enso.
The EIB loan contributes to several key EU initiatives including the European Green Deal, bioeconomy strategy and circular economy action plan.
Background information
European Investment Bank (EIB):
The European Investment Bank (ElB) is the long-term lending institution of the European Union, owned by its Member States. It finances sound investments that contribute to EU policy objectives. EIB projects bolster competitiveness, drive innovation, promote sustainable development, enhance social and territorial cohesion, and support a just and swift transition to climate neutrality.
The EIB Group, which also includes the European Investment Fund (EIF), signed a total of €88 billion in new financing for over 900 projects in 2023. These commitments are expected to mobilise around €320 billion in investment, supporting 400,000 companies and 5.4 million jobs.
All projects financed by the EIB Group are in line with the Paris Climate Accord. The EIB Group does not fund investments in fossil-fuels. We are on track to deliver on our commitment to support €1 trillion in climate and environmental sustainability investment in the decade to 2030 as pledged in our Climate Bank Roadmap. Over half of the EIB Group’s annual financing supports projects directly contributing to climate change mitigation, adaptation, and a healthier environment.
Approximately half of the EIB's financing within the EU is directed towards cohesion regions, where per capita income is lower. This underscores the Bank's commitment to fostering inclusive growth and the convergence of living standards.
About Stora Enso:
Part of the global bioeconomy, Stora Enso is a leading provider of renewable products in packaging, biomaterials and wooden construction, and one of the largest private forest owners in the world. We create value with our low-carbon and recyclable fiber-based products, through which we support our customers in meeting the demand for renewable sustainable products. Stora Enso has approximately 20,000 employees and our sales in 2023 were EUR 9.4 billion. Stora Enso shares are listed on Nasdaq Helsinki Oy (STEAV, STERV) and Nasdaq Stockholm AB (STE A, STE R). In addition, the shares are traded in OTC Markets (OTCQX) in the USA as ADRs and ordinary shares (SEOAY, SEOFF, SEOJF).
The European Investment Bank (EIB) is extending a €435 million credit to forestry company Stora Enso so it can produce greener packaging for foods and personal care products. The loan is for a major upgrade of Stora Enso’s manufacturing site in Oulu, where the company already invested €1 billion euro in reusable, fiber-based, and recyclable packaging production for consumer goods.
©EIB
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The European Investment Bank (EIB) is extending a €435 million credit to forestry company Stora Enso so it can produce greener packaging for foods and personal care products. The loan is for a major upgrade of Stora Enso’s manufacturing site in Oulu, where the company already invested €1 billion euro in reusable, fiber-based, and recyclable packaging production for consumer goods.
©EIB
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