Stora Enso Plans to Reorganise its Skutskär Production Unit in Sweden to Focus on Fluff Pulp and Increase Competitiveness

Stora Enso will start change negotiations with union representatives at its Skutskär production unit in Sweden regarding a plan to permanently close softwood pulp production on fiberline 3 (L3) and restructure the organisation to focus on fluff and increase competitiveness.

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. Our goal is to focus on fluff pulp on our two other production lines to improve the long-term competitiveness of the production unit,” says Timo Tidenberg, Head of Stora Enso’s Business Unit Skutskär, Stora Enso.

The planned L3 closure and the reorganisation would impact a maximum of 80 persons at Skutskär. The plan is to stop production during Q3-Q4 2026, subject to the completion of the change negotiations and fulfillment of customer orders. Fluff production will continue operating as usual, and potential further expansion is being investigated.

“In line with Stora Enso’s strategy, we are shaping our business for accelerated growth and value creation by serving demanding customers with specialised pulp like fluff and new Biomaterials for everyday life,” says Johanna Hagelberg, Executive Vice President Biomaterials Business Area, Stora Enso.

General information about Skutskär production unit

• Stora Enso Business Area: Biomaterials

• Country: Sweden

• Products: fluff pulp and paper pulp

• Annual capacity: 515,000 tonnes

• Number of employees: approx. 370

• Founded: 1895