Stora Enso is planning to permanently shut down one softwood pulp line at its Skutskär mill in Sweden as weakening European demand, lower pulp prices and rising wood costs continue to weigh on profitability.
Stora Enso said the affected line is currently operating with negative margins and is not expected to return to satisfactory profitability in the foreseeable future. According to the company, alternative options had been reviewed but failed to offer a long-term competitive solution.
The shutdown is expected to take place in the third or fourth quarter of 2026, subject to negotiations with union representatives and the fulfilment of existing customer commitments.
The Skutskär mill currently has a total pulp capacity of 515,000 tpy and produces both fluff pulp and NBSK. Following the closure, the site is to sharpen its focus on fluff pulp production, with the two remaining production lines continuing operations. Stora Enso also said it is evaluating a potential expansion of fluff pulp capacity at the mill.
Up to 80 jobs could be affected by the planned closure and related reorganisation measures. The Skutskär mill currently employs around 370 people.
