The leaner organisational structure bolster’s the company’s focus on renewable packaging.

Finnish packaging company Stora Enso is set to reorganise its structure into seven profit and loss (P&L) accountable business areas, emphasising the significance of its renewable packaging operations.

This restructuring aims to enhance customer engagement, operational efficiency by increasing integration and simplifying processes.

The new structure will see Stora Enso’s renewable packaging segment divided into four P&L responsible areas, namely food service and liquid board, cartonboard, containerboard, and packaging solutions.

Generating around 60% of Stora Enso’s annual revenue, these sectors will support clients in minimising their ecological footprint while capitalising on sustainability trends, leveraging leading market positions, and fostering innovation.

Each business unit will provide a range of renewable, fibre-based packaging solutions, including cartons, boxes, trays, cups, and bags, to various industries.

The remaining 40% of Stora Enso’s projected annual revenue will be managed by three other P&L accountable divisions: biomaterials, wood products, and forest.

Besides their respective businesses, they will contribute to Stora Enso’s renewable packaging by supplying essential raw materials through sustainable wood sourcing.

Under the new organisation structure, Nordic sawmills and building solutions sites will be operationally linked to the geographically nearest board or pulp production facility to improve operational and supply chain synergies.

However, Central European counterparts will stay under the Wood Products division and maintain the company’s global sales and customer service network.

The planned organisational changes include removing a layer of management and further decentralising P&L responsibility to align more closely with customer needs and operational activities.

Consequently, Stora Enso will have seven P&L accountable business areas encompassing a total of 21 P&L units.

Stora Enso president and CEO Hans Sohlström said: “Our planned new organisation has been carefully structured to maximise customer and business focus, operational efficiency and synergies, ensure the benefits of supply chain integration, and ultimately reflect our performance and results-oriented culture.”

The company appointed Markku Luoto to lead the Food Service and Liquid Board, Andreas Birmoser for Cartonboard, and Hannu Kasurinen for Containerboard.

Luoto and Birmoser are set to join the group leadership team as executive vice presidents on 1 July 2025.

Other divisions such as packaging solutions, biomaterials, wood products, and forest will retain their current leadership with Carolyn Wagner, Johanna Hagelberg, Lars Völkel, and Tuomas Hallenberg at the helm, respectively.

The implementation of the new structure is scheduled for 1 July 2025.

This transition is contingent upon co-determination negotiations and compliance with legal requirements in all affected countries.

Last month, Stora Enso began the production ramp-up of its new consumer packaging board line at the Oulu site in Finland.

Source: packaging-gateway.com