Stora Enso Concludes Veitsiluoto Sawmill Closure Negotiations

On Wednesday, Stora Enso reported that it has completed negotiations on the permanent closure of its Veitsiluoto sawmill in Kemi, Finland. Sawmill production in Northern Finland will be centralized at the company’s other sawmills, and approximately 60 employees will be made redundant.

Following the change, Stora Enso will employ approximately 840 people at Business Unit Oulu’s board mill, sawmills in Oulu, Oulainen, and Kalajoki, and port operations.

Stora Enso announced in August that it planned to permanently discontinue production at the Veitsiluoto sawmill to improve the efficiency, profitability, and competitiveness of its Northern Finland sawmill operations. The company said sawmill profitability is expected to remain challenging, in part because of high log costs.

Production at Veitsiluoto has been temporarily curtailed since early August and will now be permanently discontinued.

In a statement, Matti Lielahti, Head of Stora Enso Business Unit Oulu, said:

“The decision to close Veitsiluoto sawmill was difficult. I want to emphasize that the Veitsiluoto team has done excellent work, especially in safety. We will work closely with Stora Enso’s other sites, the employment area of Sea Lapland, and other stakeholders to support our employees in re-employment. We offer, among other things, relocation services and re-employment coaching. In addition, we offer support measures for those who wish to transfer to another work location.”