| Project Detail |
The project will finance investments to convert an idle paper machine from coated fine-paper to consumer board products to improve circularity and support plastic substitution. Additionally, this will support the promoters growth strategy in renewable packaging by providing new volume for growing packaging segments. The investment is fully aligned with the promoters sustainability commitments and its strategic shift towards sustainable and renewable packaging solutions. This is the second phase of a large mill conversion into renewable packaging production, which will also significantly improve the carbon footprint of the company.
Additionality and Impact
The project reduces negative process externalities in producing renewable packaging solutions that require high hygiene standards and, therefore, substitute for plastics in packaging. The project addresses suboptimal investment situations by strengthening supply for, and competitiveness of sustainable, recyclable and renewable packaging applications against traditional mainstream plastics packaging generating negative environmental and carbon externalities. Thereby, the project contributes to the EU Green Deal and is aligned with the Banks climate action and environmental sustainability objectives, the EU Bioeconomy strategy, EU Packaging and Packaging Waste directive as well as the EU Circular Economy Action Plan.
The proposed loan will diversify Stora Ensos financing sources and extend the debt maturity profile, which will improve the overall financing position of the company. The EIB loans long tenor is highly valuable to the company in financing assets with long economic lifetimes. The EIB loan supporting renewable packaging investments will also complement Stora Ensos other green and sustainable finance instruments.
Objectives
The modernisation of the mill will reduce its environmental footprint by installing highly efficient process technology in line with Best Available Techniques (BAT). It will support circularity by further enhancing the recycling performance of the Packaging Materials divisions product portfolio. The sites total scope 1 and 2 greenhouse gas emissions will remain at a low level (as they were already reduced by 80% during the first conversion in 2021).
Sector(s)
Industry - Manufacturing
Proposed EIB finance (Approximate amount)
EUR 435 million
Total cost (Approximate amount)
EUR 1095 million |
