Stora Enso to Close Skutskar Softwood Pulp Line on Weak Demand
Paper Recycling | 2026-05-26 05:58:03
The profitability decline is anticipated to persist, thus making the operation of the fiberline unsustainable.
By Paul Ploumis
SEATTLE (Scrap Monster): Stora Enso has announced plans to permanently end softwood pulp production on fiberline 3 (L3) at its Skutskär mill in Sweden. The move is part of the company’s restructuring strategy aimed at strengthening its fluff pulp operations and improving long-term competitiveness.
The closure is feared to impact up to 80 employees at the Skutskär facility. The company press release noted that it has already initiated negotiations with union representatives.
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According to Stora Enso, weakening softwood pulp demand across Europe since 2023, declining market prices, and rising wood costs have pushed fiberline L3 into negative margins. The profitability decline is anticipated to persist, thus making the operation of the fiberline unsustainable.
Timo Tidenberg, Head of Stora Enso's Business Unit, noted that the company had examined a number of options to improve the financial situation of fiberline 3. However, none of these options has proved feasible in ensuring long-term cost competitiveness, he said
The shutdown is expected to take place during the third and fourth quarters of 2026. Meanwhile, Stora Enso plans to focus on enhanced production of fluff pulp through its two remaining production lines.
POLL
What is the main reason for Stora Enso’s closure decision?
Frequently Asked Questions
- What has Stora Enso announced?
The company plans to permanently end softwood pulp production on fiberline 3 at its Skutskär mill in Sweden.
- Why is the fiberline being shut down?
Weak European softwood pulp demand, lower market prices, and higher wood costs have pushed the line into sustained negative margins.
- How many jobs could be affected?
Up to 80 employees may be impacted by the closure.
