Stora Enso, Helsinki, Finland, this week announced that it plans to invest in pellet production at Ala Sawmill in Sweden. This is in line with the group’s strategy to grow in high value added wood products and to focus on integrated production.

Stora Enso will invest EUR 16 million to start pellet production and to renew the boiler at Ala Sawmill in Sweden. The investment allows the group to turn the sawdust – a by-product at the sawmill – into pellets, a high value source for renewable energy. The integrated pellet production at the sawmill will secure the best product quality and manufacturing efficiency, while the investment in the boiler will improve the cost efficiency and environmental performance of the mill. Pellet production is estimated to start during the second quarter of 2017.

Stora Enso will also invest EUR 10 million to renew the boiler at its Honkalahti Sawmill in Finland, to achieve cost savings and improve the environmental performance of the mill.