Stora Enso Permanently Closes Veitsiluoto Sawmill in Finland
The wood products company confirmed the closure of its Kemi, Finland sawmill, leading to approximately 60 redundancies, as it centralizes northern Finland production to improve efficiency.
Stora Enso Closes Veitsiluoto Sawmill, 60 Jobs Affected
Stora Enso has completed negotiations regarding the permanent closure of its Veitsiluoto sawmill, located in Kemi, Finland. This decision, which the company announced in August 2026, will result in approximately 60 employee redundancies. Production at the Veitsiluoto facility had been temporarily curtailed since early August 2026 and will now cease operations permanently.
Matti Lielahti, head of Stora Enso’s Oulu business unit, stated that the closure was a difficult decision, acknowledging the team's excellent work, particularly in safety. Stora Enso plans to work closely with local employment services and other stakeholders to support affected employees with re-employment coaching and relocation services.
Following the closure, Stora Enso will employ around 840 people across its Oulu business unit, which includes a board mill, sawmills in Oulu, Oulainen, and Kalajoki, and port operations.
Northern Finland Production Centralizes, Redwood Supply Continues
The wood products company will centralize its northern Finland sawmill production at its other existing sites. This strategic shift aims to enhance the overall efficiency, profitability, and competitiveness of Stora Enso’s sawmill operations in the region.
Despite the closure, Stora Enso confirmed it will continue to supply redwood products for demanding applications from its remaining sawmills. The Oulu, Oulainen, and Kalajoki sawmills are expected to maintain their demand for logs.
Additionally, the Oulu board mill will continue to require chips and pulpwood for its operations, ensuring a continued demand for wood raw materials in the area. Stora Enso indicated the closure would have only a minor impact on its wood supply and consumption within the Oulu business unit.
High Log Costs Drive Efficiency Move, Asia Sourcing Implications
Stora Enso attributed the challenging profitability of its sawmill business, partly due to high log costs, as a key factor in the decision to close the Veitsiluoto facility. For building materials and FF&E buyers in Asia, this centralization of production in Finland signals a recalibration of European timber supply.
While Stora Enso assures continued supply of redwood products from its other facilities, buyers should verify the specific impact on lead times and pricing for sawn timber and wood panels originating from the Nordic region. Projects specifying Nordic redwood should confirm supply chain stability and available volumes with their suppliers.
Companies sourcing wood products from Europe may need to adjust their procurement strategies to account for the consolidation in Stora Enso's Finnish operations.
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