Stora Enso, the leading wood products company, has announced that it will maintain its wood sales at full capacity until the Christmas holidays. The company’s strategy is to increase its purchase volumes from Finland, as it plans to replace Russian wood with domestic sources. Stora Enso has been using approximately two million cubic meters of Russian wood annually, and while it cannot be immediately replaced, the halt in imports has created a constant demand for pulpwood. As a result, the prices of softwood have also been affected. Although the summer peak prices for softwood have already decreased, the impact of the change in wood sourcing is expected to continue.
Stora Enso’s decision to shift its focus to domestic wood sources comes as a response to the geopolitical tensions between Russia and Finland. With the aim of reducing its dependence on Russian imports and ensuring a steady supply of wood, the company has been actively seeking alternative sources within Finland. This move aligns with Stora Enso’s commitment to sustainability and its desire to support the local economy.
The company’s transition to using more domestic wood has not been without challenges. The sudden halt in Russian imports has created a significant gap in the supply chain, resulting in a constant need to purchase pulpwood. This increased demand has put pressure on the prices of softwood, which have seen a notable increase in recent months. However, with the decrease in summer peak prices, there is hope that the market will stabilize in the coming months.
Stora Enso’s decision to prioritize Finnish wood sources has also been met with positive feedback from environmentalists and local communities. By reducing its reliance on Russian wood, the company is not only supporting the local economy but also minimizing its carbon footprint. Transporting wood from Russia to Finland has significant environmental implications, including emissions from transportation and deforestation. Therefore, sourcing wood locally not only ensures a more sustainable supply chain but also contributes to the overall environmental goals of the company.
Despite the challenges faced in replacing Russian wood with domestic sources, Stora Enso remains committed to its long-term strategy. The company recognizes that the transition will take time and effort, but it is determined to secure a reliable and sustainable wood supply. By increasing its purchase volumes from Finland, Stora Enso aims to create a more resilient supply chain that is less vulnerable to geopolitical tensions and disruptions in the global market.
As the year comes to a close and the Christmas holidays approach, Stora Enso’s wood sales are expected to remain strong. With its focus on domestic wood sources, the company is well-positioned to meet the demand and ensure a steady supply for its customers. While the transition away from Russian wood has presented challenges, Stora Enso’s commitment to sustainability and its dedication to supporting the local economy have been well-received. As the prices of softwood stabilize, the company looks forward to a successful end to the year and a promising future ahead.