Store Enso reports stronger wood product demand5 May 2016
Finnish-based forest products company Stora Enso has reported stronger demand for wood products in its first quarter.
The group’s Q1 interim report shows wood product deliveries increased to 1.086 million m3, 6% higher than the same period in 2015.
Sales totalled €382m, (2015: €392m), while operational earnings before interest, tax, depreciation and amortisation (EBITDA) was €23m – the same as a year ago.
Stora Enso said wood product demand was “stronger” than the same period in 2015 and compared with Q4, 2015, but prices were lower than a year ago, yet “stable” compared with Q4.
Sales in the division decreased mainly due to lower sales prices in local currencies and reduction in volumes of traditional sawn goods. Operational EBIT increased mainly due to higher volumes in building systems and components.
Stora Enso’s new LVL production line at the Varkaus – which starts manufacturing in June – will meet the growing need for sustainable wood products for construction and industrial applications.
The €43m investment will yield an annual LVL production capacity of around 100,000m3. Meanwhile, during Q1 Stora Enso was granted the award of bio-based brand of the year.
“The award positions us well in the bioeconomy sphere and shows our commitment towards developing new sustainable solutions,” the company said.