Stora Enso will invest EUR 19 million to increase fluff pulp production at its Skutskär mill in Sweden, reinforcing its focus on specialty pulp grades while confirming the permanent closure of a softwood pulp production line.
The investment is expected to increase fluff pulp capacity at the site by approximately 10%, bringing annual production capacity to 440,000 tonnes. The project is scheduled for completion during the fourth quarter of 2027 and falls within the company’s existing capital expenditure guidance.
Focus on a growing market
According to Stora Enso, the investment will improve production stability, operational efficiency and product quality while enabling greater flexibility in future fibre blends.
The company sees continued growth potential in the fluff pulp market, driven by demographic trends and increasing demand for hygiene products worldwide.
“This is an important step for Stora Enso,” said Johanna Hagelberg, Executive Vice President of the Biomaterials Business Area. “Fluff pulp usage is growing, driven by an aging global population and increased use of hygiene products, with demand expected to outgrow supply over time.”
The investment is intended to strengthen Stora Enso’s position as Europe’s leading producer of fluff pulp, a specialty grade used primarily in absorbent hygiene products such as diapers and incontinence products.
Softwood line to close in third quarter
At the same time, Stora Enso has confirmed the permanent closure of softwood pulp production on fiberline 3 (L3) at the Skutskär site.
The decision follows change negotiations announced earlier this year and reflects what the company described as challenging market conditions for the line. Production is expected to cease during the third quarter of 2026, subject to the fulfillment of customer orders.
“Market conditions did not support a viable path for the future of L3,” said Timo Tidenberg, Head of Business Unit Skutskär. “This investment sharpens our focus on fluff, and restructuring work at the site continues.”
Strategic repositioning
The combined measures represent a further step in Stora Enso’s strategy to concentrate resources on higher-value pulp grades and growing end-use markets.
By increasing fluff pulp output while discontinuing softwood pulp production on L3, the company aims to improve the long-term competitiveness of the Skutskär operation and align the site more closely with market segments showing stronger growth prospects.
Stora Enso is a leading provider of renewable materials, with operations focused on packaging, biomaterials and wood products. Headquartered in Finland and Sweden, the company employs approximately 19,000 people and reported sales of EUR 9.3 billion in 2025.
