Stora Enso to complete De Jong deal

Stora Enso was due in January to complete the acquisition of Netherlands-based De Jong Packaging Group following its approval by the EU Commission in December 2022.

Valued at €1.02 billion, the acquisition is expected to increase Stora Enso’s market share in renewable packaging in

Europe, as De Jong is one of the largest producers of corrugated packaging in the Benelux countries.

With the acquisition, Stora Enso’s Packaging Solutions division has increased its corrugated packaging capacity two-and-a-half times to more than 2 billion sqm a year.

When the acquisition was announced last year, Stora Enso’s chief executive Annica Bresky said: “In line with our strategy, we are investing in growing our market share in renewable and circular packaging solutions. De Jong Packaging has a solid presence in the corrugated packaging sector growth was slower, increasing by 5.3 per cent year on year at €2.86bn. Net profit in the quarter was down 5.3 per cent at €584m.

Chief executive Annica Bresky commented: “After what has been an exceptional year in many ways, I am proud that we have delivered against our financial guidance for 2022 despite a disruptive, highly inflationary, and challenging environment.

“We have completed significant strategic projects, while making good progress to invest in strategic assets and innovation for growth in renewable packaging, sustainable building solutions and biomaterials innovations.

“Our performance in 2022 demonstrates the strength of our leading market positions and our ability to be proactive and agile in making necessary adjustments for a new reality both short and long term.” and an impressive customer base. Acquiring their operations supports our future strategic direction to advance renewable packaging solutions within Europe.”

Compared to 2022, margins are expected to be squeezed by increasing costs, particularly in relation to energy, wood, chemicals and logistics, said the company in its outlook for 2023.

De Jong Packaging Group has 17 sites in the Netherlands, Belgium, Germany and the UK, and employs about 1,300 people.