Stora Enso plans to close Veitsiluoto sawmill in Kemi, second blow to city this week

Finnish forestry company Stora Enso announced plans to permanently close its Veitsiluoto sawmill in Kemi. The company also intends to consolidate its North Finland saw production at its Oulu and Kalajoki facilities. This move aims to enhance efficiency, profitability, and competitiveness, according to Stora Enso.

Continuing operations at the century-old Veitsiluoto site would require significant investment, while the Oulu sawmill is modern and in its ramp-up phase. The Veitsiluoto sawmill's staff are currently on furlough until early October. If the closure plan proceeds, the mill will not reopen after the furlough period. The company will enter change negotiations concerning the approximately 60 employees affected, which are expected to last about three weeks.

Stora Enso had previously ceased pulp and paper production at Veitsiluoto. The site currently focuses on pine sawing. Veitsiluoto is part of Stora Enso's Oulu business unit, which employs around 900 people across its paperboard mill, sawmill, port operations, and sawmills in Veitsiluoto, Oulainen, and Kalajoki.

This announcement marks the second blow to Kemi in as many days. Metsä Group announced Tuesday it was canceling its planned investment in a textile fiber production facility in Kemi. The project, named Kuura, aimed to produce wood-based textile fiber but was halted due to changing market conditions, including significant overproduction, particularly in Asia, leading to price drops. Metsä Group stated it lacks sufficient customers willing to pay a premium for responsibly produced fiber. The company is exploring alternative uses for its textile fiber expertise and will invest 25 million euros in fiber packaging production in Äänekoski.

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The continuation of operations at the over hundred-year-old Veitsiluoto sawmill would require significant investments.