HELSINKI, Finland-- Stora Enso says it will invest EUR 26.5 million in Skutskär pulp mill to increase its fluff capacity to meet the growing demand in the hygiene market.

The investment will enhance Skutskär Mill's profitability and long-term competitiveness by increasing fluff production by approximately 160,000 tonnes annually. The mill's softwood capacity is expected to be reduced by 160,000 tonnes, starting from year 2018. The total fluff pulp capacity of the mill after the investment will amount to 415,000 tonnes.

The investment supports Stora Enso's strategy of transforming into a customer-focused renewable materials growth company. The aim is to develop further the current market pulp business and to focus more on growth segments. "Both hygiene and non-woven products are a fast-growing market. This investment will enable us to support the growth of our customers and further develop this business together with them," says Juan Carlos Bueno, EVP, Stora Enso's Biomaterials division.

The investment is expected to be completed during the second quarter of 2018, and it falls within the group's capital expenditure guidance given earlier. The investment includes the necessary changes to one of the drying machines.

Stora Enso's Skutskär Mill produces Northern bleached kraft softwood pulp (NBSK), softwood fluff pulp and bleached hardwood pulp (birch). The total annual capacity of the mill is 540 000 tonnes. The fluff pulp is mainly used in airlaid hygiene products such as diapers, feminine care products and adult incontinence products. It is also used in tabletop products and wipes.