HELSINKI (News release) -- Stora Enso plans to reorganise its Skutskär production unit in Sweden as part of a proposed shift toward greater focus on fluff pulp and improved long-term competitiveness.

The company will begin change negotiations with union representatives at the Skutskär site regarding a plan to permanently close softwood pulp production on fiberline 3, known as L3, and restructure the unit's organisation. The proposed changes are intended to align the production unit more closely with market demand and strengthen its position in specialised pulp.

Demand for softwood pulp in Europe has declined since 2023, while price levels have weakened and wood costs have continued to rise. As a result, Skutskär's L3 softwood pulp line is currently operating with negative margins, and Stora Enso expects its profitability to remain unsatisfactory in the future.

Timo Tidenberg, Head of Stora Enso's Business Unit Skutskär, said the company has reviewed several possible measures to improve the financial situation of fiberline 3, but none of the options assessed were considered feasible for securing long-term cost competitiveness. He said the aim is now to concentrate on fluff pulp production through the unit's two other production lines in order to improve Skutskär's competitiveness over the long term.

The planned closure of L3 and the wider reorganisation could affect up to 80 people at the Skutskär production unit. Stora Enso's current plan is to stop production during the third or fourth quarter of 2026, subject to the completion of change negotiations and the fulfilment of customer orders.

Fluff pulp production at Skutskär will continue as normal. Stora Enso is also investigating the potential for further expansion of fluff production at the site.

Johanna Hagelberg, Executive Vice President of Stora Enso's Biomaterials Business Area, said the planned changes are aligned with the company's strategy to shape its business for accelerated growth and value creation. She noted that Stora Enso aims to serve demanding customers with specialised pulp, including fluff pulp, as well as new biomaterials for everyday life.

The Skutskär production unit belongs to Stora Enso's Biomaterials business area and is located in Sweden. The site produces fluff pulp and paper pulp, has an annual capacity of 515,000 tonnes, employs approximately 370 people and was founded in 1895.