05 October 2010, 09:07

Stora Enso is continuing to expand in solid biofuels by investing EUR 10 million
in starting pellet production at Imavere Sawmill in Estonia. The pellet plant
project will commence in the fourth quarter of 2010 and is expected to be
completed in the fourth quarter of 2011.

“This investment is part of our strategy to grow in solid biofuels with the aim
of becoming the leading integrated supplier of pellets in Northern Europe. With
this investment we are targeting industrial and residential customers through
our already established distribution and marketing channels, for example in
Sweden, which is the largest pellet market in Europe. Imavere is also very well
located to start serving the pellet market in southern Finland,” says Hannu
Kasurinen, EVP, Stora Enso Wood Products.

The annual capacity of the plant will be 100 000 tonnes of pellets. The pellet
production will be fully self-sufficient in raw material and will utilise
by-products from the sawmill and further processing operations.

“Imavere is one of our core sawmill sites, with a strong business concept and
good basis for future development. Through this investment we will further
enhance the sawmill's long-term competitiveness,” says Hannu Kasurinen.

The annual capacity of Imavere Sawmill is 400 000 m3 of sawnwood, joinery
components and glue-laminated beams. Stora Enso Wood Products already produces
pellets at four sites in Sweden and Russia with total annual capacity 310 000

Stora Enso Wood Products is an internationally operating business and part of
the Stora Enso Group, providing a wide portfolio of wood-based products and
solutions for building, decorative and packaging uses. With annual sales of EUR
1.5 billion in 2009 Wood Products employs some 4 500 people in 22 production
sites in 11 European countries and in several sales and distribution companies
around the world.

Stora Enso is a global paper, packaging and wood products company producing
newsprint and book paper, magazine paper, fine paper, consumer board, industrial
packaging and wood products. The Group is the world leader in forest industry
sustainability. We offer our customers solutions based on renewable raw
materials. Our products provide a climate-friendly alternative to many
non-renewable materials, and have a smaller carbon footprint. Stora Enso is
listed in the Dow Jones Sustainability Index and the FTSE4Good Index. Stora Enso
employs some 27 000 people worldwide, and our sales in 2009 amounted to EUR 8.9
billion. Stora Enso shares are listed on NASDAQ OMX Helsinki (STEAV, STERV) and
Stockholm (STE A, STE R). In addition, the shares are traded in the USA as ADRs
(SEOAY) in the International OTCQX over-the-counter market.