Helsinki — Finnish pulp, paper and packaging board maker Stora Enso scrapped plans to expand its paperboard mill in Poland because of an oversupplied market as it delivered a weak profit forecast on Thursday. Stora announced the investment in the mill in Ostroleka, Poland, in 2016, estimating the project’s costs in the region of €350m to €400m. Presenting its interim report on Thursday, the company said there were several new paperboard projects in the pipeline in Europe that would affect the product’s market balance. "We cannot meet our capital return targets if we go ahead with that [expansion plan]," CE Karl Sundstrom told a media briefing. In January, Stora Enso said it would also probably scrap its plan to build a €700m to €800m pulp mill in China, where it is ramping up a paperboard mill. Antti Viljakainen, an analyst from Inderes Equity Research, welcomed the cancellations, saying the projects had appeared uncertain. "They are still ramping up the paperboard mill in China, so...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.