Stora Enso plans to reorganise its Skutskär production unit in Sweden by shutting down softwood pulp production on fiberline 3 (L3) and increasing its focus on fluff pulp as part of efforts to improve long-term competitiveness.
The company said declining European demand for softwood pulp since 2023, falling price levels and rising wood costs have pushed the L3 line into negative margins. Stora Enso expects profitability challenges for the line to persist going forward.
The planned closure would affect up to 80 employees at the Skutskär production unit. Production on the softwood pulp line is expected to stop during the second half of 2026, subject to change negotiations with union representatives and the completion of customer orders.
Timo Tidenberg, Head of Stora Enso’s Business Unit Skutskär, said the company had evaluated several alternatives to improve the financial performance of fiberline 3 but concluded that none would provide sufficient long-term cost competitiveness.
Fluff pulp production at Skutskär will continue operating normally on the mill’s two remaining production lines, and Stora Enso said it is also evaluating potential future expansion of fluff capacity.
Johanna Hagelberg, Executive Vice President of Stora Enso’s Biomaterials business area, said the move aligns with the company’s strategy to focus on specialised pulp grades and biomaterials with stronger value-added potential.
The Skutskär production unit produces fluff pulp and paper pulp and has an annual production capacity of approximately 515,000 tonnes. The site employs around 370 people.
Stora Enso is a renewable materials company focused on packaging, biomaterials, wood products and paper. The company develops fiber-based solutions intended to replace non-renewable materials and support the transition to a circular bioeconomy. Stora Enso employs approximately 19,000 people and reported 2025 sales of EUR 9.3 billion.
