Stora Enso, a renewable packaging products company, has secured a €435m ($473.25m) loan agreement with the European Investment Bank (EIB) to support greener packaging production at its site.

The company will use the funds to bolster its expansion into ever-more renewable, fibre-based consumer packaging boards.  

Part of the loan will help finance Stora Enso's €1bn investment in its Oulu mill in Finland.  

Set to commence operations in the first half of 2025, the mill is set to house a converted consumer board production line. 

It aims to become one of the most modern and cost-efficient sites for packaging materials in Europe. 

Stora Enso packaging materials division executive vice-president Hannu Kasurinen said: "The investment in Oulu supports our growth strategy in renewable, circular packaging by providing new volume for the growing packaging segment. The wood fibre is sourced from sustainably managed forests in the Nordics, and the boards are designed to replace plastics in food and personal care packaging."  

The new, long-term bilateral loan agreement features an amortising structure, with the final repayment scheduled for 2036.  

This arrangement will effectively extend the maturity profile of Stora Enso's debt, contributing to the company's long-term financial stability. 

Stora Enso treasury SVP Kaarlo Höysniemi said: "This new loan with EIB will not only provide us with financial flexibility, but it also underscores our commitment to sustainable, profitable growth.

"Securing access to long-term capital from a variety of sources is a pivotal element of our strategy, as it enables us to invest in new growth opportunities."  

In May this year, Stora Enso postponed its decision to convert two paper machines at its Langerbrugge site in Belgium into a high-volume recycled containerboard line.