Stora Enso Oyj, Europe’s biggest papermaker, climbed the most in five weeks after unveiling investment plans including converting a Finnish paper machine to make containerboard.
Stora Enso rose as much as 2.9 percent in intraday trading, the most since May 7. Shares in the Helsinki-based company advanced 2.4 percent to 5.26 euros at 1:13 p.m. in the Finnish capital. Volume exceeded 1.2 million shares, about a third of the three-month daily average.
Stora may invest as much as 100 million euros ($133 million) to convert a fine-paper machine in Varkaus, Finland, to manufacture virgin-fiber-based containerboard, it said today. A study examining the investment’s profitability will be completed in the first quarter. The company will also spend 32 million euros to boost the pulp production capacity of its Skoghall mill in Sweden.
Declining newsprint demand is pushing papermakers to cut capacity and seek growth in alternative products, including pulp, packaging and biofuel. Stora Enso has previously invested in the production of renewable packaging at Ostroleka, Poland, and Guangxi, China.