Stora Enso to close Skutskär L3 softwood pulp line and refocus on fluff pulp

Key highlights
  • Stora Enso plans to permanently close softwood pulp production on Skutskär fiberline 3 (L3).
  • Production on L3 is planned to stop during Q3–Q4 2026, subject to change negotiations and customer orders.
  • The reorganisation could affect a maximum of 80 employees; the Skutskär unit employs ~370 people and has 515,000 t/yr capacity.
  • L3 runs at negative margins amid falling European softwood pulp demand since 2023 and rising wood costs, prompting the shift to fluff pulp.
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Stora Enso Skutskär Fluff Pulp · Sweden
FID / Sanctioned
2026-05
2026-06
2027 Q4

Planned change

Stora Enso will start change negotiations at its Skutskär production unit to permanently close softwood pulp production on fiberline 3 (L3) and restructure the site to focus on fluff pulp to improve long-term competitiveness.

Rationale

Softwood pulp demand in Europe has declined since 2023 and prices have dropped while wood costs have increased. Skutskär’s L3 currently operates at negative margins and examined options did not prove feasible to secure long-term cost competitiveness for the line.

Impact and timing

The planned closure and reorganisation would impact a maximum of 80 persons. Stora Enso plans to stop L3 production during Q3–Q4 2026, subject to completion of change negotiations and fulfillment of customer orders. Fluff production on the two other lines will continue and potential further expansion is being investigated.

Skutskär unit snapshot

The Skutskär production unit produces fluff pulp and paper pulp, has an annual capacity of 515,000 tonnes, and employs approximately 370 people; the mill was founded in 1895.

Source: Stora Enso