Scandinavian group Stora Enso has been granted a loan worth €435 million from the European Investment Bank (EIB). Most of the funds will be used to expand and modernize the company’s paper mill in the Finnish city of Oulu.

(IN BRIEF) The European Investment Bank (EIB) is extending a €435 million credit to Stora Enso to upgrade its Oulu manufacturing site for producing eco-friendly, fiber-based packaging for food and personal care products. This investment aims to reduce plastic reliance and global pollution by offering a sustainable alternative. The project, part of Stora Enso’s broader €1 billion investment, will enhance economic growth and development in Northern Finland. EIB Vice-President Thomas Östros highlighted the initiative’s contribution to a green, circular economy and its alignment with EU environmental and economic strategies. Kaarlo Höysniemi of Stora Enso emphasized the loan’s role in supporting the company’s sustainable growth and long-term capital strategy.

The European Investment Bank (EIB) has approved a €435 million credit line for Stora Enso, aimed at transforming its Oulu manufacturing site to produce eco-friendly packaging for food and personal care products. This funding will support the production of recyclable, fiber-based packaging, reducing the reliance on plastic and mitigating global pollution. The upgrade at the Oulu plant, which follows Stora Enso’s prior €1 billion investment, will provide an affordable, sustainable alternative to plastic packaging for a global client base.

EIB Vice-President Thomas Östros highlighted the significance of this loan in promoting a green, circular economy, emphasizing its role in fostering innovation, growth, and job creation. He noted that Stora Enso’s efforts demonstrate the viability of the green economy in driving economic and environmental sustainability. Additionally, this project will enhance economic vitality in Northern Finland and strengthen the EU’s industrial competitiveness and regional cohesion.

Kaarlo Höysniemi, Stora Enso’s Senior Vice-President of Group Treasury, expressed that the EIB loan will provide financial flexibility and support the company’s commitment to sustainable growth. The loan aligns with key EU initiatives such as the European Green Deal, bioeconomy strategy, and circular economy action plan, furthering environmental protection and economic sustainability goals.

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.

Source:  europawire.eu