Stora Enso plans to stop production of softwood pulp at the Skutskär mill during Q3-Q4 2026. The production of fluff pulp will continue as usual.
May 25, 2026 - Stora Enso today announced plans to permanently close softwood pulp production on fiberline 3 (L3) at its Skutskär pulp mill in Sweden. The company also said that it will restructure the mill to focus on fluff and increase competitiveness.
Change negotiations with union representatives at the Skutskär mill are starting.
According to Stora Enso, softwood pulp demand in Europe has declined since 2023 and price levels have been dropping while wood costs have increased. Currently, Skutskär's fiberline L3 softwood pulp operates at negative margins, and its profitability is expected to remain unsatisfactory also going forward.
"We have examined a number of options to improve the financial situation of fiberline 3. However, none of these options have proved feasible in ensuring long-term cost competitiveness for L3," explained Timo Tidenberg, Head of Stora Enso's Business Unit Skutskär, Stora Enso. "Our goal is to focus on fluff pulp on our two other production lines to improve the long-term competitiveness of the production unit."
The planned L3 closure and the reorganization would impact a maximum of 80 employees at Skutskär.
Stora Enso said the plan is to stop production during Q3-Q4 2026, subject to the completion of the change negotiations and fulfillment of customer orders. Fluff pulp production will continue operating as usual, while potential further expansion is being investigated.
The Skutskär mill operates within Stora Enso's "Biomaterials" business area. Located in Skutskär, Sweden, the mill has the capacity to produce 515,000 tonnes per year of fluff pulp and paper pulp. It employs about 370 people.
Stora Enso is a global leader in renewable materials with a strong focus on packaging. The company designs and delivers competitive, high-quality packaging materials and solutions made from fresh and recycled fibers.
SOURCE: Stora Enso