Metsä Board, a subsidiary of the Metsä Group, has announced plans to close its Tako board mill and enhance operational efficiency at the Kyro board mill as part of a strategy to address ongoing financial difficulties and improve competitiveness.
At the Tako mill, Metsä operates two board machines with a total capacity of 210,000 tpy of folding boxboard (FBB). The board machine at the Kyro mill can produce up to 190,000 tpy of FBB
The company informed that it initiated change negotiations at both facilities, involving approximately 360 employees. Up to 215 jobs may be cut as a result of the announced measures. The change negotiations are expected to span at least six weeks, with final decisions on closures and layoffs made afterward.
Production at the Tako mill is slated to cease in 2025 if the plan proceeds. Despite the closure, Metsä Board assures customers that their FBB production capacity would remain sufficient to meet market demand.
Economic and Operational Challenges
The Tako and Kyro mills have been operating under capacity due to weak market conditions and rising costs. Metsä already implemented several temporary layoffs at the sites. Both facilities reported losses in 2023 and 2024. The Tako mill, situated in Tampere city centre, faces additional challenges, including high energy costs and limited scalability due to its location and small production lines.
Metsä Board estimates these measures could bolster its annual Ebitda by approximately €30m. However, the company anticipates a €30 million asset write-down, with further one-off restructuring costs to be detailed later.
