Reorganization - Jöbstl new head of European business

19 sawmills and an increasing number of processing lines

For 13 years, Herbert Jöbstl has been head of nine Stora Enso factories in Central Europe. Now, thanks to the reorganization, "Austria's top sawyer" is climbing to the top of production division and becomes head of 19 sawmills, 16 planing mills, four composite lumber productions, two for KVH, one for LVL, four for window/door components and two CLT productions. (Note: 3rd CLT production starts in the Q1 of 2019 in Gruvön/SE.) Jöbstl will be supported by Edurard Reutner, responsible for the entire supply chain since 2017, and Miikka Pesonen who is in charge of sales of all products except sawmill residues.

Under this top-level operative management, there are regional officers for Central Europe, the Baltics/Russia, and the Nordic countries respectively. The former location manager of Brand is taking Jöbstl's place as head of Central European productions: Gerald Hongleitner-Welt.

High regard for Central Europe

Jöbstl is delighted that "now, one single team is responsible for the entire solid wood production. Previously, two divisions were in charge that did cooperate very well already - but unified we will be even stronger." The fact that this also works as an affirmation of the Central European strategy and therefore his work so far remains unsaid, but may very well be assumed.

In his interview with Timber-Online, Jöbstl emphasizes that Stora Enso not only is the undisputed number 1 in Europe's sawmill sector, but with an annual output of 2.6 million m³ also comes in first in terms of further processing products. He takes this as an opportunity to also speak about the fact that most recently, there may have not been any sawmill construction projects - but plenty of projects in the downstream sector. In the CLT branch, for instance, Stora Enso is competing head-to-head with Binderholz, one of Europe's biggest players.

CLT expansion, step one

"The Nordic countries are still at the very beginning when it comes to CLT demand. In Gruvön, we are starting at the right moment and we will grow with increasing demand", Pesonen describes the upcoming steps: "The expansion is well needed." The new location provides CLT volumes also for Great Britain and overseas markets. The two Austrian productions in Ybbs and Bad St. Leonhard can then focus on Central and Southern Europe.

Strong supply fluctuations depending on region

For the sawmill sector, Jöbstl highlights the fact that the roundwood supply pressure in Central Europe is currently very high. And also in Poland, supply is so good that a switch to a three-shift operation is now possible. "Looking at Europe as a whole, however, roundwood supply proves to be quite varied", he elaborates.

Jöbstl identifies the enhancement of internal synergies and the elimination of production bottlenecks as one of his major tasks. "Automations to improve heavy jobs that are hard to fill are further focal areas." 

Jöbstl considers a profit or loss on ordinary activities of more than 10% crucial for necessary investments - however, even more important is a ROI (return on investment) of more than 20%.

Expanding further processing

The question where Stora Enso will be in five years' time, Pesonen answered as follows: "Our portfolio in the further processing sector will be even broader." From his point of view, this is also necessary to absorb the imponderables of volatile global markets. "Currently, most global markets are doing well. However, we are still far removed from a megacycle or the like. The sales market is not quite as overheated as it was for instance in 2007. Therefore, the current situation is also more stable", he is convinced.

Global opportunities on "niche markets"

To Pesonen it is important to be fully present not only on big markets like China or the US. "More exotic markets offer better opportunities to achieve high earnings." Niche markets like that are for instance Indonesia, Malaysia, Taiwan, Vietnam, and Pakistan. "We supply these markets with tailor-made products." 

"The service potential will also increase until 2023", Reutner predicts. He refers to the BIM implementation for CLT, statics tools or the distribution concepts in Australia and the United States with the opportunity to order online 24/7. Reunter: "The digitalization and the optimization of the supply chain will play an important role for us."

Ribbed slab elements from Ybbs, composites from Sweden

Hongleitner-Welt indicates that there will be a new product even earlier: "By the end of May, we start the production of ribbed slab elements. Glued trusses are combined with CLT elements to achieve light-weight elements with less wood volume but high performance." International marketing term: Rib Panel by Stora Enso.

At the beginning of the year, Stora Enso started the production of wood composite Dura Sense in the Swedish factory in Hylte. The investment sum was €12 million. The factory's annual production amounts to 15,000 t which is the largest pulp composite volume in Europe. Dura Sense is a composite made from pulp, polymers, and additives. 

"Securing raw material supply" - a sector evergreen - is still on top of Jöbstl's agenda. "The entire sector must work more efficiently." Even though CLT might currently be considered the "right product at the right time",  it still offers a lot of room for improvement. Jöbstl's slogan: "More building, less material."

Full support from the top management

Jöbstl, Reutner and Pesonen emphasize explicitly that "their" wood products division has always had the appreciation of Stora Enso's CEO Henrik Sundström. The current reorganization confirms this.