Metsäliitto has started labour negotiations with a view to closing the Kyröskoski sawmill.
The company blamed the move on increased spruce sawmill capacity in Europe and lack of spruce logs for all mills in the region to be competitive.
Operations at the mill, located in Hämeenkyrö, have been suspended since January 2009.
Metsäliitto said the negotiations will centre on the possible closure of the mill, unless a profitable solution can be found. Negotiations, starting on January 21, concern the entire 62-strong workforce, and are expected to be concluded by the end of March.
The mill has an annual sawn production of 200,000m³, with over 50% exported.
“In order to enable profitable operations in the long term, it is necessary to centralise production to units which have preconditions to run at an optimal level,” said Ole Salvén, group executive vice-president of Metsäliitto Wood Products Industry.