May 6, 2025 - Metsä Fibre said that it will start change negotiations on possible temporary layoffs at the Joutseno and Rauma pulp mills in Finland, and the Rauma sawmill.
The negotiations involve the entire personnel of these production facilities, a total of approximately 465 people.
Joutseno pulp mill has the capacity to produce 690,000 tonnes per year of northern bleached softwood pulp, which is commonly used in the production of most paper, paperboard and tissue products.
Rauma pulp mill has the capacity to produce 650,000 tonnes per year of softwood pulp.
Metsä Fibre explained the change negotiations are used to prepare for the temporary need to restrict production due to the order backlog and the weakened market situation.
Metsä Group's CEO, Ilkka Hämälä, in the Group's first quarter 2025 earnings summary (April 29), noted overcapacity in both pulp and folding boxboard markets is a concern.
"Market development of the pulp business is affected by the uncertainties concerning China's economy, and the increased capacity of eucalyptus pulp … The folding boxboard market continues to be disturbed by the significant overcapacity of corresponding qualities from Asian producers. The market situation for coated linerboard was normal. The US tariffs announced after the reporting period are creating uncertainty in delivery estimates," Hämälä said.
According to Metsä Fibre. any layoffs would last for a maximum of 90 days and could be implemented in several cycles by the end of December 2025. The allocation, amounts and dates of layoffs will be specified during 2025.
Change negotiations will begin in week 20 (begins Monday, May 12) and are expected to last for two weeks.
Metsä Fibre, a member of the Metsä Group, is a leading producer of wood-based bioproducts, such as pulp, sawn timber, biochemicals and?bioenergy. The company produces pulp and bioproducts at four mills and sawn timber products at four sawmills in Finland.
SOURCE: Metsä Fibre