Stora Enso is preparing to permanently close its Veitsiluoto sawmill in northern Finland and move its pine sawn timber production to other mills in the region, the second significant change affecting the group's Finnish sawmilling operations to emerge within two days.<\/p>\n
The plan follows the start of employee consultations at Uimaharju, reported yesterday, where Stora Enso is reviewing the organisation of its 240,000 m\u00b3\/year sawmill together with the neighbouring Enocell pulp mill. Up to 35 jobs could be lost at that site, although the company has not announced any reduction in Uimaharju's sawmilling capacity.<\/p>\n
At Veitsiluoto, the proposed measure goes considerably further. The sawmill is already under a temporary production curtailment and, under the new plan, would not resume operations in October. Its approximately 60 employees are now entering a three-week consultation process over the proposed permanent closure.<\/p>\n
The two announcements put different parts of Stora Enso's Finnish sawmilling network under scrutiny at the same time. Uimaharju is facing a cost and organisational review, while in northern Finland the group is preparing to remove an older production site and redistribute its output among newer mills.<\/p>\n
Veitsiluoto production to move to Oulu and Kalajoki<\/strong><\/p>\n Rather than abandoning the volumes produced at Veitsiluoto, Stora Enso intends to concentrate pine sawing at other northern Finnish locations, particularly Oulu and Kalajoki.<\/p>\n The age of the Veitsiluoto mill is a central factor in the decision. Sawmilling has been carried out at the site for more than a century, and Stora Enso says keeping the operation running would require substantial new investment.<\/p>\n The alternative capacity is already available within the group. The Oulu sawmill is currently increasing production, while Stora Enso significantly enlarged its northern Finnish sawmilling network through the acquisition of Junnikkala in 2025.<\/p>\n That transaction brought the Oulu, Kalajoki and Oulainen sawmills into Stora Enso and added around 700,000 m\u00b3 of annual sawn timber capacity. The acquisition was completed in May 2025.<\/p>\n This expanded network gives Stora Enso considerably more room to redistribute production than it had previously. The company expects the disappearance of Veitsiluoto from the network to have only a limited effect on the amount of wood consumed by its Oulu business unit.<\/p>\n The proposal represents a concentration of production at fewer mills rather than a corresponding withdrawal of Stora Enso from roundwood purchasing in northern Finland.<\/p>\n Two different decisions, the same pressure on costs<\/strong><\/p>\n The timing of the Veitsiluoto announcement is notable given the process launched at Uimaharju only a day earlier.<\/p>\n Around 380 employees are covered by the Uimaharju consultations, which concern both the sawmill and Enocell. Stora Enso is considering changes to staffing, responsibilities and the organisation of work, with a maximum of 35 positions at risk.<\/p>\n The Uimaharju sawmill itself has annual capacity of approximately 240,000 m\u00b3. For the moment, there is no indication that Stora Enso intends to close the mill, reduce its capacity or alter its production programme.<\/p>\n Veitsiluoto is therefore a different case. Instead of trying to lower the cost base of the existing operation, Stora Enso is considering ending production altogether and transferring volumes to other facilities.<\/p>\n Both decisions, however, come as Finnish sawmills continue to operate in a difficult market. Sawn timber demand remains subdued in important European construction markets, while Finnish producers have been dealing with high sawlog costs. The combination has left limited room for older or less efficient capacity.<\/p>\n Stora Enso has increasingly concentrated investment on mills where it sees scope for higher productivity and integration with its other businesses. In Oulu, the expansion of sawmilling accompanies the development of the group's board production, while the Junnikkala acquisition has given it a substantially larger industrial base in northern Finland.<\/p>\n Finnish sawmill network is being reshaped<\/strong><\/p>\n Taken together, the Uimaharju and Veitsiluoto announcements provide a clearer picture of how Stora Enso is adjusting its Finnish sawmill operations.<\/p>\n At Uimaharju, the group is seeking savings while retaining the existing 240,000 m\u00b3 production base. At Veitsiluoto, it is prepared to give up a century-old mill because maintaining it would require investment that can be avoided by using capacity elsewhere.<\/p>\n The changes also come little more than a year after Stora Enso bought Junnikkala, substantially increasing its exposure to sawmilling in northern Finland. The result is not a straightforward retreat from sawn timber production. Instead, the company is moving production towards a smaller number of plants where capacity is newer or can be used more efficiently.<\/p>\n For Veitsiluoto, the change could be definitive. If the proposal proceeds after the employee consultations, the temporary shutdown currently in place will become permanent and around 60 positions will be affected.<\/p>","protected":false},"excerpt":{"rendered":" Stora Enso is preparing to permanently close its Veitsiluoto sawmill in northern Finland and move its pine sawn timber production to other mills in the region, the second significant change affecting the group’s Finnish sawmilling operations to emerge within two … Continue reading