Stora Enso plans restructuring at Skutskär mill to strengthen fluff pulp focus
Stora Enso plans to reorganise operations at its Skutskär production unit in Sweden, including the proposed permanent closure of softwood pulp production on fiberline 3 (L3), as part of efforts to improve competitiveness and strengthen the site’s focus on fluff pulp production. The company confirmed that change negotiations with union representatives will begin regarding the proposed restructuring.
According to Stora Enso, demand for softwood pulp in Europe has weakened since 2023, while market prices have declined and wood raw material costs have increased. Under current market conditions, the company stated that fiberline 3 is operating with negative margins and is not expected to achieve satisfactory profitability in the foreseeable future.
“We have examined a number of options to improve the financial situation of fiberline 3. However, none of these options have proved feasible in ensuring long-term cost competitiveness for L3. Our goal is to focus on fluff pulp on our two other production lines to improve the long-term competitiveness of the production unit,” said Timo Tidenberg, Head of Stora Enso’s Business Unit Skutskär.
The planned closure of fiberline 3 and the associated organisational restructuring could affect up to 80 employees at the Skutskär site. If the proposal proceeds following negotiations, production on the affected line is expected to stop during the third or fourth quarter of 2026, depending on the completion of customer orders and the outcome of the consultation process.
The company confirmed that fluff pulp production at the mill will continue as normal, while additional opportunities for future expansion in fluff pulp are also being evaluated.
“In line with Stora Enso’s strategy, we are shaping our business for accelerated growth and value creation by serving demanding customers with specialised pulp like fluff and new Biomaterials for everyday life,” said Johanna Hagelberg, Executive Vice President of the Biomaterials Business Area at Stora Enso.
The Skutskär production unit operates within Stora Enso’s Biomaterials division and produces both fluff pulp and paper pulp. The mill has an annual production capacity of approximately 515,000 tonnes and employs around 370 people. The site was originally established in 1895.
