HELSINKI -- Stora Enso says it will invest in pellet production at its Ala sawmill in Sweden. This is in line with the group's strategy to grow in high value added wood products and to focus on integrated production, the company said.

Stora Enso will invest EUR 16 million to start pellet production and to renew the boiler at Ala Sawmill in Sweden. The investment allows the group to turn the sawdust - a by-product at the sawmill - into wood pellets.

Pellet production is estimated to start during the second quarter of 2017.

Stora Enso will also invest EUR 10 million to renew the boiler at its Honkalahti Sawmill in Finland, in order to achieve cost savings and improve the environmental performance of the mill.