Negotiations over temporary lay-offs are under way at Stora Enso Timber’s Veitsiluoto sawmill in Finland.
The company said the sawmill operations are unprofitable due to high raw material costs, declining prices for Nordic redwood products and high labour costs.
Despite the sawmill being modern and efficient, there is no real prospect of profitability improving under current operating conditions.
Veitsiluoto sawmill employs 92 people and has an annual production capacity of 300,000m3 of sawn wood products for the construction and joinery industries and wood products trade.
The company is considering a number of options that would enable the sawmill to resume production on a profitable basis and the outcome of negotiations will be announced by mid-July at the latest.
