Chief executive Jukka Hrml said the group had limited opportunities in newsprint, magazines and consumer boards due to its high market shares in those sectors. But he said there was room for expansion in the fine paper and industrial packaging boards sector.

The development comes after the firms announcement of a 469m restructuring programme across its fine and magazine paper operations.

Hrml felt there were risks attached to buying assets in China and Asia, which could limit opportunities in those markets.

And while opportunities in South America were also limited, a planned project to build a eucalyptus pulp mill in Brazil was likely to go ahead, he added.

The Finnish/Swedish producer is still to make a decision on its role in the 50/50 project with Brazilian pulp producer Aracruz, but said it was positively inclined towards it.

The total investment in the Veracel project, which has a projected capacity of 1m tonnes a year, is expected to be over 760m ($1.2bn).

The project is expected to take two to three years to complete once a final decision has been made.

An analysis of the Dow Jones Sustainability Index has ranked Stora Enso as the most sustainable forest products firm in the world.

Story by Andy Scott