Stora Enso contracts Valmet to supply extensive rebuild of PM No. 3 at Varkaus, Finland, mill, resulting in converting fine paper machine to produce lightweight containerboard grades, with startup in Q4 2015; value of order is about €30M

ESPOO, Finland , May 13, 2014 (press release) – Valmet will supply Stora Enso with an extensive rebuild for converting the Varkaus mill's PM 3 fine paper machine to produce lightweight containerboard grades. The target of the paper-to-packaging rebuild is to produce lightweight virgin fibre based packaging materials on a paper machine that previously produced fine paper, a grade that is suffering from decline in demand.

The rebuilt containerboard machine is scheduled to start up during the fourth quarter of 2015. The value of the order is around EUR 30 million. The order is included in Valmet's second quarter 2014 orders received.

"This delivery is an excellent and innovative response to the structural change the paper industry is facing. By rebuilding the existing fine paper machine with new key components Valmet can provide the customer with a value-adding solution that enables operations to continue in Varkaus," says Jari Vähäpesola, Paper Business Line President, Valmet.

The employment impact of Valmet's project is expected to be in total around 100 man years of which main part in Finland.

Valmet's technology will enable the production of high quality renewable packaging board

Valmet's delivery will include a new headbox, forming section rebuild including Fourdrinier extension with new top forming unit, press section rebuild with new SymBelt press nip as well as rebuilds of dryer section, calender, reel and winder. The delivery will also include related air system as well as equipment for stock preparation area.

Through the machine conversion, Stora Enso in taking advantage of the combination of two market forces: the decreasing global market for fine paper but increasing global market for renewable packaging board.

About Stora Enso

Stora Enso is the global rethinker of the paper, biomaterials, wood products and packaging industry. Stora Enso employs some 29 000 people worldwide, and its sales in 2013 amounted to EUR 10.6 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.

Valmet Corporation is a leading global developer and supplier of services and technologies for the pulp, paper and energy industries. Our 11,000 professionals around the world work close to our customers and are committed to moving our customers' performance forward - every day.

Valmet's services cover everything from maintenance outsourcing to mill and plant improvements and spare parts. Our strong technology offering includes entire pulp mills, tissue, board and paper production lines, as well as power plants for bio-energy production.

The company has over 200 years of industrial history and was reborn through the demerger of the pulp, paper and power businesses from Metso Group in December 2013. Valmet's net sales in 2013 were approximately EUR 2.6 billion. Valmet's objective is to become the global champion in serving its customers.

Valmet's head office is in Espoo, Finland and its shares are listed on the NASDAQ OMX Helsinki Ltd.

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