Stora Enso to invest 79 million euros in CLT production

Stora Enso invests in CLT production in the Czech Republic (Photograph: Stora Enso)

Stora Enso has announced its decision to invest approximately 79 million euros in a new production line for cross laminated timber (CLT) at its Ždírec sawmill in the Czech Republic. Construction is expected to start during the first quarter of 2021 and production is scheduled to begin during the third quarter of 2022. The estimated annual production capacity will be approximately 120 000 cubic metres after ramp-up.

The investment is expected to generate annual sales of approximately 70 million euros when run at full capacity and to meet the Wood Products division’s profitability target of 20% operational return on operating capital (ROOC).

“This investment enables us to accelerate our growth within the mass timber construction market. It is well in line with our strategic integrated mill concept. It will further improve our capabilities to offer a high-quality range of building solutions for our customers around the world. CLT is showing significant growth potential in the market, with characteristics that make it possible to build higher, lighter and yet stronger than ever before. With our well-proven building concepts and supporting digital tools, we intend to inspire and drive the construction industry towards a more sustainable future, built on renewable materials,” said Lars Völkel, Executive Vice President, Stora Enso Wood Products division.

The investment is estimated to increase the number of employees at the mill by approximately 110. 

Currently, Stora Enso has three CLT production units with a total capacity of 270 000 cubic metres: Gruvön in Sweden, and Ybbs and Bad St. Leonhard in Austria.