Stora Enso is investing Euro 43 million in a new production line for wooden building elements located in Varkaus, Finland. Production is scheduled to begin in the second quarter of 2016.

The estimated yearly capacity of the production line will be around 100,000 cubic meters. The investment is expected to generate annual sales of Euro 50 million when run at full capacity and over time significantly exceed Stora Enso's ROCE target of 13%, the company said.

"This investment is part of Stora Enso's transformation to a customer-focused renewable materials company. With this investment we will be able to meet growing urban construction needs, serve new geographic areas and markets and offer our customers a wider range of wood product solutions," says Jari Suominen, EVP, Head of Stora Enso's Wood Products.

In Varkaus, Stora Enso can take advantage of and make best use of the premises available, an industrial infrastructure for efficient logistics, the local supply of raw material to optimize wood sourcing and highly competent workforce. The operational model at the Varkaus sawmill will be reviewed in connection with the production start-up. The estimated total employment impact for the Varkaus region is 150 FTEs.