Metsäliitto is suspending operations at its Kyrökoski sawmill until further notice.
The company said the spruce mill closure is due to heavily reduced demand and unprofitable sawmilling.
Statutory labour negotiations ended on January 23, and the majority of the 67 staff will be temporarily laid off.
Metsäliitto said if conditions improved the 200,000m³ capacity mill may resume operations after the summer, potentially with limited capacity.
“The most effective way to reduce losses is to decrease the sawing volume, unfortunately,” said Ole Salvén, group executive vice-president, Metsäliitto Wood Products Industry, Finnforest.
“The overcapacity in the sawn timber markets in Europe inevitably leads to shrinking production volumes in Finland.”
More than 50% of Kyrökoski’s output is exported.
