Metsä said the Kaskinen unit had long been unprofitable despite numerous efficiency improvement measures.
The company plans to close the facility after statutory labour negotiations are concluded by the end of October. Some 80 workers are affected, with maximum job cuts likely to be around 60.
The facility produces upgraded sawn timber products for the Finnish market.
"The possible closure will have no impact on Thermowwood heat-treated wood product manufacturing or the operation of the Kolho impregnation plant," Metsä Wood said.
"It has no impact on Metsä Wood’s upgrading business in the UK and France."
