Mets\u00e4 Fibre has opened a second round of change negotiations at its Joutseno pulp mill in Finland, warning that weak pulp demand and conditions in the domestic wood market may require production to remain below normal for longer than previously expected.<\/p>\n
The negotiations concern possible temporary layoffs and cover the mill\u2019s entire workforce of approximately 160 employees. They are scheduled to begin during week 37.<\/p>\n
\u201cThe pulp market situation remains challenging. Due to the demand outlook and the situation in the wood market, we need to prepare for adjusting pulp production for a longer period than previously anticipated,\u201d Mets\u00e4 Fibre CEO Ismo Nousiainen said.<\/p>\n
In March, Mets\u00e4 Fibre began negotiations over temporary layoffs of up to 90 days involving approximately 170 employees. The company also announced a production shutdown beginning on 31 March, saying that output needed to be aligned with uncertain demand, particularly in Asia.<\/p>\n
The new negotiations indicate that the weakness has continued beyond the period for which the earlier measures were designed. Mets\u00e4 Fibre has not announced a permanent closure, a reduction in the mill\u2019s nominal capacity or redundancies at Joutseno. It has also not disclosed the possible duration or timing of the new layoffs.<\/p>\n
Joutseno remains heavily dependent on Asian pulp demand<\/strong><\/p>\n The Joutseno mill produces bleached softwood pulp and has annual capacity of approximately 690,000 tonnes. Running at full capacity requires around 3.5 million m\u00b3 of wood annually, making the site an important buyer of softwood pulpwood and sawmill chips in southeastern Finland.<\/p>\n Its commercial exposure is less diversified than that of a mill supplying mainly integrated Finnish paper or packaging production. A significant proportion of Joutseno\u2019s pulp is sold to Asia, including China, where demand for imported northern softwood pulp has remained weak and price competition has intensified.<\/p>\n Nousiainen said in March that the difficult demand environment had already continued for several years and that the majority of Joutseno\u2019s production was directed towards Asian markets.<\/p>\n China has invested heavily in new pulp and paper capacity, while additional hardwood pulp volumes from South America have changed the global supply balance. Hardwood pulp cannot replace Nordic softwood in every application, but the growing availability of lower-cost hardwood material affects purchasing strategies and the price manufacturers are prepared to pay for long-fibre pulp.<\/p>\n European pulp producers are also carrying higher wood costs than many competitors in South America. In Finland, the loss of Russian imports after 2022 increased competition for domestic roundwood. Although pulpwood prices have retreated from their 2025 peaks, wood remains an expensive input relative to current pulp-market conditions.<\/p>\n Joutseno is therefore being squeezed from both sides: selling conditions remain weak in its main export markets, while the correction in Finnish wood costs has not been sufficient to restore comfortable production margins.<\/p>\n Lower production would be felt in the regional wood market<\/strong><\/p>\n The new negotiations are relevant beyond the mill\u2019s workforce. At full production, Joutseno\u2019s annual wood requirement is large enough to influence pulpwood purchasing across southeastern Finland and demand for chips produced by regional sawmills.<\/p>\n A prolonged reduction in output would remove part of that demand. For forest owners, this could add pressure to a pulpwood market already trading well below last year\u2019s record prices. For sawmills, the effect is more complicated.<\/p>\n Lower demand from Joutseno could weaken the market for sawmill chips, one of the principal by-products of softwood lumber production. The value obtained for chips, sawdust and bark forms part of a sawmill\u2019s total recovery from every log. When pulp mills reduce their intake, sawmills can lose revenue even if their own lumber production remains unchanged.<\/p>\n At the same time, weaker pulpwood demand does not necessarily produce a comparable decline in sawlog prices. Finland\u2019s sawlog market has remained relatively firm because mechanical wood processors require specific diameters and qualities, while forest owners can postpone sales if offers fall too far. Consequently, sawmills may receive less for their chips without obtaining sufficient relief on the logs entering production.<\/p>","protected":false},"excerpt":{"rendered":" Mets\u00e4 Fibre has opened a second round of change negotiations at its Joutseno pulp mill in Finland, warning that weak pulp demand and conditions in the domestic wood market may require production to remain below normal for longer than previously … Continue reading