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Stora Enso investing CZK 2.1 billion in a new production line

The company is expanding its production with an innovative product for wooden houses

Stora Enso investing CZK 2.1 billion in a new production line Source: Stora Enso

The wood-processing company Stora Enso is investing approximately CZK 2.1 billion in a new production line for CLT panels in Ždírec nad Doubravou. This involves an innovative, environmentally friendly product with strong potential in the wood-construction market. Construction of the line will begin in the first quarter of 2021. The company plans to start production in the third quarter of 2022. The investment’s annual turnover is expected to be approximately CZK 1.9 billion if the plant operates at full capacity.

The company applied for an incentive for this investment through CzechInvest in May 2019. In August 2019, the government approved an investment incentive in the value of approximately CZK 380 million from the state budget, with Stora Enso’s total state-supported investment amounting to CZK 1.75 billion. The company will create sixty new jobs in connection with the investment.

Stora Enso is a Finno-Swedish wood-processing company focused on sustainable solutions in the areas of packaging technology, biomaterials, wooden architecture and paper production. The company’s Wood Products Division has been present in the Czech Republic since 1998, specifically in Ždírec nad Doubravou and in Planá u Mariánských Lázní. In total, Stora Enso employs nearly one thousand people in the Czech Republic. The company's total investment in the Czech Republic amounts to approximately CZK 3.1 billion (1998-2018), of which CZK 305 million is the state’s share in the form of investment incentives and CZK 167.4 million comprises subsidies from European funds.

An important part of the company is its Software Development Competence Centre in Ostrava, which has been actively supported by CzechInvest since its establishment. The centre provides IT services within the global corporation. Stora Enso has long cooperated with CzechInvest’s Investment Management Department through AfterCare services and collaborates with the agency in seeking out opportunities and support for its new investment projects.

More information is available on the Stora Enso website.