Tuesday, March 1, 2016 10:15 am

HELSINKI -- Stora Enso announced that it is investing around 63 million EUR (US $68.5 million) to further improve its competitiveness in consumer board and biomaterials in the strategic growth areas of China and Sweden.

Stora Enso will invest 31 million EUR (US $34 million) in a new polyethylene coating line in the new consumer board mill in Beihai, China. The Beihai mill is expected to be in operation during the second quarter of 2016.

The company said that the investment will enhance Stora Enso's strategy for profitable growth and supports competitiveness by enabling short lead times and full quality control for PE coated prime food service board. The investment is expected to be completed in the middle of 2017.

Stora Enso is also investing 16 million EUR (US $17 million) in a new chemical plant at the consumer board mill in Skoghall, Sweden to further improve the environmental performance of the mill. The investment is expected to be completed by the end of 2017.

In the Biomaterials division, Stora Enso is investing 16 million EUR (US $17 million) to improve the environmental performance by reducing sulphur emissions of its mill in Skutskär, Sweden. The investment is also expected to be completed by the end of 2017.

The investments are intended to further Stora Enso's transformation into a global renewable materials growth company. 31 million EUR (US $34 million) of these investments are part of the group's 2016 capital expenditure forecast, which amounts to 680-720 million EUR (US $739-782 million).