April 16, 2025
On April 14, the Finnish Competition and Consumer Authority (Kilpailu- ja kuluttajavirasto, KKV) approved the acquisition of sawmill company Junnikkala by Swedish-Finnish timber group Stora Enso. An in-depth review showed that the takeover does not cause competition concerns in the log wood procurement market. Both companies procure the log wood for their two sawmills in the region from the same areas, as KKV Director Sanna Syrjälä explains. Forest owners will still have sufficient alternatives, as competing timber buyers can respond flexibly to price developments. Differences in raw material demand and procurement strategies between the two companies further limit their market power, the authority goes on to explain its decision.
The Finnish family-owned company Junnikkala operates three sawmills in Kalajoki, Oulainen, and Oulu. The latter was put into operation early last year and has doubled Junnikkala’s lumber production output to 700,000 m³ a year. The annual cutting capacity is 1.5 million m³ of log wood. €90 million were invested in the site.
Stora Enso also operates a site in Oulu where the group produces 450,000 tonnes of fresh fiber kraftliner and 550,000 tonnes of unbleached softwood pulp annually. A new production line for consumer board was commissioned in March. The company also operates a sawmill in Veitsiluoto, which is located only around 100 km from the Oulu site, with an annual capacity of 200,000 m³ of lumber. Three other sawmills in Finland are also owned and operated by Stora Enso (Varkaus, Honkalahti, Uimaharju).
October 29, 2024
“As owners, we have run the family company with courage and confidence and, above all, together with our great staff for the last 20 years. In that time, Junnikkala has grown to more than ten times its size. Now, the time has come for a change in ownership. Stora Enso’s strong position on the market will ensure the development and competitiveness of our production sites in the future,” Kalle Junnikkala, CEO of Junnikkala Oy, says.
Over the course of the next year, Stora Enso wants to start up a new converted packaging board line in Oulu. The takeover will create synergies, especially with regard to raw material and by-product flows as well as wood procurement. Junnikkala’s employees are said to become senior managers.
The transaction is expected to close in the first half of 2025.
