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Wood Supply:<br />
Expanding in new growth markets<br />
Wood markets in Northern Europe<br />
remain tense, with the forest taxation<br />
change in Finland bringing an additional<br />
element of uncertainty. In the near<br />
future, eucalyptus pulp fl ows from the<br />
Veracel Pulp Mill will also have a signifi -<br />
cant impact on birch wood consumption<br />
and wood markets in Europe<br />
Read more about Veracel on<br />
page 19.<br />
<strong>Stora</strong> <strong>Enso</strong> has continued to expand its<br />
wood procurement in Russia and Central<br />
Europe. In China, <strong>Stora</strong> <strong>Enso</strong> is progressing<br />
with plantation development in<br />
Guangxi. In South America, the Group<br />
has acquired land in Brazil and Uruguay<br />
with a view to establish new fast-growing<br />
plantations.<br />
In Russia, Wood Supply has invested<br />
in improving its control over the supply<br />
chain. This has involved acquisitions of<br />
Russian logging companies that have<br />
long-term agreements with the Russian<br />
government. These logging companies<br />
now have the capacity to supply about<br />
1.2 million m3 of wood, or nearly 15 %<br />
of total wood procurement in Russia.<br />
Read more about wood procurement in<br />
the Sustainability 2005 report on pages<br />
12–13.<br />
<strong>Stora</strong> <strong>Enso</strong> Timber:<br />
Adding value to wood<br />
<strong>Stora</strong> <strong>Enso</strong> Timber supplies sawn and<br />
processed softwood products to the construction<br />
and joinery industries and the<br />
wood products trade. Timber frame construction<br />
products include standardised<br />
solid and glued posts, beams, studs and<br />
joists, usually made from spruce. Joinery<br />
Storm hit Nordic region. “Gudrun” hit Southern Sweden in January 2005. The storm is estimated<br />
to have felled up to 70 million m3 of timber which corresponds to almost the entire annual harvest<br />
in Sweden. Storm damages were also seen in the Baltic countries.<br />
customers manufacturing windows,<br />
doors, and furniture prefer pine. Both<br />
species are used in planed boards for<br />
interior use and exterior cladding.<br />
<strong>Stora</strong> <strong>Enso</strong> Timber is a global player<br />
in the fragmented wood product market.<br />
The key factors driving this market<br />
include developments in interest rates<br />
and national programmes affecting building<br />
activity, standards covering wooden<br />
frame structures, as well as developments<br />
in the DIY (do-it-yourself) market.<br />
Focusing on mass-customised, higher<br />
value-added products – and reducing the<br />
role of standard bulk products – represents<br />
an integral part of <strong>Stora</strong> <strong>Enso</strong><br />
Timber’s strategy, and is designed to<br />
reduce the volatility of the business and<br />
increase profi tability, by offering more<br />
complete product and service solutions<br />
to customers. •<br />
Focus on performance<br />
“Our aim is to be the world’s best<br />
wood product company, and the<br />
leading wood supplier worldwide.<br />
We are addressing profi tability issues<br />
through reorganisation, consolidation,<br />
and by continuing to move into new<br />
growth markets,” says Elisabet<br />
Salander Björklund, Senior Executive<br />
Vice President, <strong>Stora</strong> <strong>Enso</strong> Forest<br />
Products.<br />
STORA ENSO COMPANY 2005• 25
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