Stora Enso facts for kids
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| Julkinen osakeyhtiö | |
| Traded as | OMX: STEAV, STERV OMX: STE A, STE R |
| ISIN | ISIN: [https://isin.toolforge.org/?language=en&isin=Helsinki Helsinki: FI0009005953 and FI0009005961, Stockholm: FI0009007603 and FI0009007611] |
| Industry | Paper and packaging |
| Founded | 1998 (1288) |
| Headquarters | Helsinki, Finland |
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Key people
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Kari Jordan (chair of the board), Hans Sohlström (CEO) |
| Products | Packaging materials, biomaterials, wooden construction and paper |
| Revenue |  €9.396 billion (2023) |
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Operating income
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€342 million (2023) |
| €-431 million (2023) |
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| Total assets | €20,754 million (2023) |
| Total equity | €10,889 million (2023) |
| Owners | Solidium, FAM AB and others |
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Number of employees
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20,000 (2023) |
Stora Enso Oyj is a big company from Finland and Sweden. It works with forests and wood. The company makes many different materials, mostly from wood. These materials are used in various industries all over the world.
Stora Enso has its main offices in Helsinki, Finland, and Stockholm, Sweden. Most of its sales happen in Europe. However, it also has important business in Asia and South America.
Stora Enso was created in 1998. This happened when two companies joined together: Stora AB from Sweden and Enso Oyj from Finland. In 2023, about 20,000 people worked for Stora Enso.
Some people believe Stora Enso is the oldest limited liability company in the world. This is because its history can be traced back to a company called Stora Kopparberg. A very old share certificate from this company was found, dating back to 1288.
Contents
Company History
Stora Enso was formed when two large companies merged in 1998. These were Stora, a Swedish company, and Enso Oyj, a Finnish company. Both companies focused on forest products.
Stora's Story
The company Stora has a very long history. The oldest known share certificate in the world belongs to Stora. It was issued in 1288 for a Swedish copper mining company called Stora Kopparberg. This certificate gave the Bishop of Västerås a small part (1/8th) of the company.
In 1347, the King of Sweden, Magnus IV of Sweden, officially recognized the company. Because of this long history, some people think Stora Enso is the oldest existing company in the world.
For some time in the 1600s, the copper mine produced two-thirds of the world's copper! But in the 1700s, copper mining became less important. So, in 1731, the company started buying iron ore mines. By the 1860s, iron ore was more important than copper for the company's business.
In 1862, Stora Kopparbergs Bergslags AB became a modern company with shareholders. Later, in the late 1800s, it started making pulp and paper. In the 1970s, the company sold most of its mining and steel businesses. It then focused mainly on activities related to forests. In 1984, the company's name was shortened to Stora AB. The old copper mine closed in 1992.
In 1998, Stora merged with Enso to create Stora Enso.
Enso's Story
The history of Enso goes back to the 1850s. A man named Wilhelm Gutzeit started a company called Wilh. Gutzeit & Co. in Norway.
Early Years (1850–1899)
Wilhelm Gutzeit's son, Hans Gutzeit, took over the company in 1869. In 1871, Hans started working in Finland. He opened a sawmill in Kotka in 1872, naming it W. Gutzeit & Comp. In 1897, the company officially became a Finnish company. Its name changed to Aktiebolaget W. Gutzeit & Co.
Growth and Changes (1900–1998)
The company grew by buying other businesses. In 1908, it bought Aktiebolaget Pankakoski. In 1911, it bought Enso Träsliperi Ab. This added board production to the company's products.
In 1918, the newly independent country of Finland bought the company's shares. This made Gutzeit a company fully owned by the state.
The company's main office moved from Kotka to Helsinki in 1924. In 1928, its name changed to Enso-Gutzeit Osakeyhtiö.
In 1935, the company started building the Kaukopää mill in Imatra. At that time, it was the largest sulfate pulp mill in Europe.
The Summa paper mill in Hamina began operating in 1955.
In 1981, the company's name changed again to Enso-Gutzeit Oy.
Enso-Gutzeit bought the forest industries of A. Ahlström Osakeyhtiö in Varkaus in 1987.
In 1993, the company bought parts of Tampella, including Tampella Forest Oy. It also bought Tambox Europe's units in Finland and Sweden.
In 1996, two state-owned forest companies merged. Enso-Gutzeit Oy and Veitsiluoto Oy became Enso Oyj.
In 1997, Enso Oyj bought most of the German forestry company E. Holtzmann & Cie.
Finally, in 1998, Enso merged with Stora to form Stora Enso.
Stora Enso's Journey
First Decade (1998–2009)
After the merger, Stora Enso grew by buying more wood product businesses. It also bought paper selling businesses in Europe. In 2000, the company bought Consolidated Papers in North America. Stora Enso also slowly expanded its business in South America, Asia, and Russia.
The purchase of Consolidated Papers in 2000 was very expensive. Later, financial experts said it did not bring much value to the company. In the same year, Stora Enso and AssiDomän created a new company together called Billerud AB. This company made packaging paper.
In 2002, Stora Enso started looking into building tree farms and factories in Guangxi, China.
In recent years, Stora Enso has changed a lot. It sold its North American businesses in 2007. Stora Enso also sold or closed some of its mills in Finland, Sweden, and Germany.
In 2009, Stora Enso started a joint project in Uruguay called Montes del Plata. This project involved 250,000 hectares of forest and a plan to build a large mill.
Second Decade (2010–2019)
In 2010, Stora Enso bought 30% of Inpac, a Chinese company that makes paper packaging.
In 2012, Stora Enso made an agreement with Packages Ltd. from Pakistan. They formed a joint company called Bulleh Shah Packaging (Pvt.) Ltd. Stora Enso owned 35% of this company. In 2017, Stora Enso sold its share back to Packages Ltd.
Between 2006 and 2014, the amount of paper products Stora Enso sold went down. But sales of packaging and wood products went up. This was because the company focused more on renewable packaging as online shopping grew. In 2015, news reports said Stora Enso was investing in biomaterials and renewable construction products for future growth.
By 2016, Stora Enso owned 90% of Inpac.
In 2017, it was reported that Stora Enso was focusing on renewable packaging, biomaterials, and construction products. The money earned from paper sales continued to decrease.
In 2018, Stora Enso joined 23 other companies to form Combient. This group shares knowledge and does research on artificial intelligence, deep learning, big data, and automation.
Some new products launched between 2017 and 2019 included:
- EcoFishBox: cardboard packaging for fresh fish, replacing polystyrene boxes.
- Lineo: an industrial supply of lignin to replace certain glues.
- Prototypes of biodegradable drinking straws.
- DuraSense biocomposites: wood-based fibers that can replace fossil-based plastic.
- A new retail solution using RFID-enabled e-kiosks for shopping.
Recent Years (2020–present)
In early 2020, Stora Enso started a new division called Forest. This division included:
- Stora Enso's forests in Sweden.
- Its 41% share of Tornator, which has most of its forests in Finland.
- Wood supply operations in Finland, Sweden, Russia, and the Baltic countries.
In July 2021, Stora Enso announced it was selling its RFID tag technology, called ECO, to Grupo CCRR.
In March 2022, Stora Enso said it planned to sell four paper mills. These mills are in Anjala (Finland), Hylte and Nymölla (Sweden), and Maxau (Germany). If no buyer was found, the company would continue to run them.
What Stora Enso Makes
Stora Enso offers products and services through six main divisions.
- The Biomaterials division sells pulp. It also sells other products that can be taken from wood and other plant materials.
- The Packaging materials division sells different types of paperboard. This is used for packaging dry and liquid foods, and for printing.
- The Forest division handles wood supply in Finland, Sweden, Russia, and the Baltic countries.
- The Packaging solutions division sells corrugated fiberboard and other paperboard for making packaging. It also sells complete packaging boxes, equipment, and services for packaging production.
- The Paper division sells paper for printing and office use. It also offers services for the printing industry, like managing paper supply.
- The Wood products division sells building materials made from wood.
Where Stora Enso Works
Most of Stora Enso's operations are in Europe.
In 2021:
- 26% of its employees worked in Finland.
- 22% worked in Sweden.
- 13% worked in China.
- 9% worked in Poland.
- 5% worked in the Czech Republic.
- 5% worked in Russia.
- 4% worked in Austria.
- 13% worked in other European countries (like the Baltic states, Belgium, France, Germany, and Spain).
- 3% worked in Brazil and Uruguay.
- 1% worked in other countries.
Main Offices
The first main office for Enso-Gutzeit Oy in Helsinki was designed by a famous architect named Alvar Aalto. The building was first used in 1961. In 2008, Stora Enso sold this building. It then started renting the building and planned to move to new offices in Helsinki.
In December 2021, construction began on Stora Enso's new main office in Katajanokka. This new building also planned to have other offices and a hotel. It is owned by a pension company called Varma. The building was finished in spring 2024. Stora Enso moved to a temporary office while the new one was being built.
Joint Projects
Stora Enso works with other companies on special projects.
- Veracel is a joint project in Brazil. Stora Enso owns 50% of it, and Suzano Papel e Celulose owns the other half.
- In Uruguay, Stora Enso (50% ownership) and Celulosa Arauco y Constitución work together on the Montes del Plata project.
How Stora Enso is Run
Important People
Hans Sohlström is the current CEO (Chief Executive Officer) of Stora Enso.
Past CEOs included:
- Annica Bresky (2019-2023)
- Karl-Henrik Sundström (2014-2019)
- Jouko Karvinen (2007-2014)
- Jukka Härmälä (1998-2007)
The board of directors in 2024 includes: Kari Jordan (chair), Håkan Buskhe (vice chair), Elisabeth Fleuriot, Helena Hedblom, Astrid Hermann, Christiane Kuehne, Richard Nilsson, and Reima Rytsölä.
Who Owns Stora Enso
As of May 2024, the Finnish state is the largest owner of Stora Enso. It owns shares through the Solidium fund and the Social Insurance Institution of Finland. The Wallenberg family foundations, through FAM AB, are the second largest owners. These two also have the most voting power.
The five biggest owners on May 31, 2024, were:
- Solidium Oy
- FAM AB
- Social Insurance Institution of Finland (KELA)
- Ilmarinen Mutual Pension Insurance Company
- Varma Mutual Pension Insurance Company
Company Language
After Stora and Enso merged, English became the main language used for communication within the company. A study found that this change helped the company's internal communication work well.
Being a Responsible Company
Stora Enso works to be a responsible company.
In July 2014, Stora Enso started working with Save the Children. They focused on children's rights, especially regarding how products are made in Pakistan.
In April 2015, Stora Enso partnered with the ILO (International Labour Organization). Their goal was to stop child labor in their supply chain in Pakistan. They also wanted to create good working conditions. Because of their experiences in Pakistan, Stora Enso added a special leader for sustainability to their main team. They also added sustainability managers to each division.
In 2016, Stora Enso was recognized for its efforts in fighting climate change. The CDP environmental group put them on their "Climate A list." Only 193 out of 1,839 companies made this list.
Stora Enso was a main sponsor of the FIS Nordic World Ski Championships 2017 in Lahti. The company provided items made from renewable materials for the games. This included two shelters for spectators built from wood, which were later given to the city.
See also
In Spanish: Stora Enso para niños
- William Lehtinen, Enso-Gutzeit's post-war rebuilder and CEO
- Great Copper Mountain
- Ahlstrom
- Enso (town)
- List of Finnish companies
- List of oldest companies
- Svenska Cellulosa Aktiebolaget
- UPM-Kymmene
