Stora Enso gives final approval to inves

STORA ENSO OYJ  Stock Exchange Release 11 December 2003 at 09.00

Stora Enso gives final approval to investments at Kvarnsveden 
and Skoghall

Stora Enso's Board of Directors at its meeting on 10 December 
2003 approved the plans for building a new paper machine at 
Kvarnsveden, Sweden, initially announced on 25 October 2002 as 
part the Asset Restructuring Programme, and for major 
improvement of energy efficiency at Skoghall Board Mill, Sweden. 
The investments at Kvarnsveden and Skoghall fall within Stora 
Enso's target of keeping capital expenditure at or below the 
level of depreciation over the cycle.

The purpose of the Asset Restructuring Programme is to increase 
the overall competitiveness of Stora Enso's assets, which 
include about a hundred production units, whilst meeting the 
growing quality demands of its customers. The plan includes 
targeted investments, machine specialisation measures and 
elimination of less-competitive production assets. 

Stora Enso will build a new paper machine at Kvarnsveden Mill in 
Sweden to improve its competitiveness in uncoated magazine paper 
production. The total investment is estimated at approximately 
EUR 450 million, and the aim is that the investment cost per 
tonne should be below EUR 1 000. The annual production capacity 
of the machine will be about 420 000 tonnes of high-quality 
super-calendered (SC) papers. The machine is expected to start 
up at the end of 2005. Paper machine 9 at Kvarnsveden Mill, 
which has an annual capacity of 130 000 tonnes of improved 
newsprint, will be shut down when the new SC machine starts up. 

The investment will significantly enhance cost efficiency and 
strengthen Stora Enso's position in the growing and profitable 
SC paper market. 

The Asset Restructuring Programme also includes other 
investments in uncoated magazine paper. Paper machine 6 at Maxau 
Mill in Germany will be rebuilt to enhance its productivity and 
competitiveness. That machine produces SC-B paper made from 
recovered fibre. 

When the new paper machine at Kvarnsveden has started up, paper 
machine 3 at Langerbrugge Mill, which has an annual capacity of 
165 000 tonnes, will change from making mainly high-quality SC 
to exclusively SC-B paper. This will allow Langerbrugge to 
maximise the usage of recycled fibre. 

In addition, the Group will cease non-competitive production of 
SC paper on paper machine 5 at Wolfsheck Mill in Germany when 
the new machine at Kvarnsveden starts-up. The Group is 
investigating options for paper machine 5 at Wolfsheck Mill, but 
it will not continue in production within the Publication Paper 
division. The mill currently has two paper machines producing 
some 150 000 tonnes of high-quality SC paper and wallpaper base 
annually. The mill will be further developed within Stora Enso. 

The projects approved will, as previously announced, increase 
the Group's annual capacity in high-quality SC paper by around 
200 000 tonnes net in the five-year period 2005-2010.

Skoghall Mill's Energy 2005 investment project aims to secure 
the future base for board production and strengthen the mill's 
energy supply. This will enable cost-effective production with 
low emissions in both the short and long term. The project 
includes a new recovery boiler area, evaporation plant and 
conversion of an oil boiler into a biofuel boiler. The new 
evaporation plant and recovery boiler will start up in autumn 
2005 and the biofuel boiler in summer 2006. Project 
implementation will begin immediately.

The total investment will amount to EUR 211 million. The 
investment will reduce the oil consumption of the mill by some 
60 000 cubic metres annually and increase electricity self-
sufficiency from 15% to about 40%.

For further information, please contact:
Bernd Rettig, Senior Executive Vice President, Stora Enso 
Publication Papers, tel. +49 211 581 2310
Pekka Laaksonen, Senior Executive Vice President, Stora Enso 
Packaging Products, tel. +358 2046 21218
Yngve Stade, Senior Executive Vice President, Corporate Support, 
tel. +46 8 613 66 60
Esko Mäkeläinen, Chief Financial Officer, 
tel. +44 20 7016 3115
Kari Vainio, Executive Vice President, Corporate 
Communications, tel. +44 7799 348 197
Keith B Russell, Senior Vice President, Investor Relations, 
tel. +44 20 7016 3146
Lars-Ove Staff, Mill Manager, Kvarnsveden Mill, 
tel. +46 243 650 01
Ulf Eliasson, Mill Manager, Skoghall Mill, tel. +46 54 514350

Kvarnsveden Mill is a paper mill located in central Sweden. It 
has an annual production capacity of approximately 670 000 
tonnes of newsprint, improved newsprint and uncoated magazine 
(SC) paper on four paper machines. Kvarnsveden Mill is part of 
Stora Enso's Paper Product Area.

Skoghall Mill is a producer of cartonboard for consumer 
packaging and printing, especially liquid packaging board, board 
for dry foodstuffs and liner. The mill is an integrated 
operation based on renewable raw materials that can be recycled 
or used as fuel. It has an annual production capacity of 650 000 
tonnes of cartonboard, such as folding boxboard (FBB), liquid 
packaging board (LPB) and white top liner (WTL) on two machines. 
Skoghall Mill is part of Stora Enso's Packaging Product Area.


Jyrki Kurkinen		Ulla Paajanen-Sainio