MM Kotkamills has completed the change negotiations regarding the company's sawmill that started in September. After the negotiations, it has been decided that the sawmill will be closed permanently.
The decision has been influenced by the long-lasting high price of raw material in relation to the low market price of sawn timber, the reduced demand for sawn timber due to the economic cycle, as well as significant investment needs to maintain sawmill operations and develop competitiveness.
Since the fall of 2022, the profitability of the sawmills has been loss-making, and the situation has not changed for the better during 2023.
The sawmill has been shut down since July 2023. The closing of the sawmill affects 64 people. Every effort is made to support their employment. MM Kotkamills, together with the TE office, is establishing a working group, the purpose of which is to promote the re-employment of the sawmill's personnel. Open positions in the factory integrated are also offered to sawmill personnel.
The annual capacity of the sawmill has been 210,000 cubic meters of lumber.