Stora Enso has launched restructuring negotiations covering its Enocell pulp mill and Uimaharju sawmill in eastern Finland, with up to 35 positions potentially affected as the company responds to weak demand and pressure on profitability.

The process covers approximately 380 employees across all personnel groups at the Uimaharju industrial site, located in Joensuu in Finland’s North Karelia region.

Stora Enso said no final decisions have been made. The negotiations will examine possible changes to staffing, organisational structure, responsibilities and individual roles before any measures are implemented.

Up to 35 Jobs Could Be Affected

According to the company, the proposed restructuring could result in the termination of as many as 35 employment contracts, equivalent to just over 9% of the employees covered by the negotiations.

The company has not specified how potential reductions would be divided between the pulp mill and sawmill, or which functions could be most affected.

Alongside possible redundancies, Stora Enso is evaluating changes to how work is organised across the Uimaharju business unit.

This could include revised responsibilities, new combinations of duties and adjustments to the existing organisational structure.

The stated objective is to improve operational efficiency, competitiveness and profitability.

Enocell Mill Produces 630,000 Tonnes of Pulp Annually

The Enocell pulp mill has operated since 1967 and has annual production capacity of approximately 630,000 tonnes.

The facility produces softwood pulp and unbleached kraft pulp, supplying fibre for downstream paper, packaging and other forest-based applications.

Its neighbouring Uimaharju sawmill, established in 1951, has annual production capacity of approximately 240,000 cubic metres of sawn timber.

The sawmill supplies products primarily for construction, joinery and other wood-processing applications.

Because the two facilities share raw material flows and industrial infrastructure, changes at Uimaharju affect more than two separate production units. Together they form an integrated forest industry site with an important role in the regional wood supply chain.

Weak and Volatile Demand Pressures Profitability

Stora Enso said the restructuring plans reflect continued weakness and volatility in global demand.

Forest industry businesses remain exposed to several external factors, including construction activity, industrial output, customer inventory levels and international trade conditions.

For export-oriented producers, fluctuations in these areas can quickly influence order volumes, pricing and mill operating rates.

Ilpo Räty, Head of Stora Enso’s Uimaharju business unit, said the economic and geopolitical environment remains difficult and continues to affect the site’s performance.

According to Räty, the proposed changes are intended to improve both efficiency and profitability at Uimaharju.

Pulp Producers Continue to Face Difficult Market Conditions

The negotiations come as the European pulp and forest products sector continues to adjust to uneven demand and cost pressure.

Softwood pulp producers in particular are dealing with changing consumption patterns, weaker demand from some paper grades and intense competition across global fibre markets.

At the same time, sawmills remain closely tied to construction activity, meaning subdued building markets can place additional pressure on integrated forest industry sites.

For locations such as Uimaharju, where pulp and sawn timber operations share infrastructure and raw material flows, maintaining competitive production costs is particularly important.

Regional Employment Impact Remains Uncertain

The Uimaharju site is one of the significant industrial employers in the area, approximately 50 kilometres north-east of central Joensuu.

Any reduction in employment would therefore have implications beyond Stora Enso itself, particularly for local contractors, forestry suppliers and service businesses connected to the mills.

However, because the restructuring talks are still underway, the final number of affected positions and the future organisational structure remain uncertain.

Stora Enso is expected to provide more detailed information once negotiations have been completed.

Industry Outlook

The Uimaharju restructuring highlights the continued pressure on European forest industry companies to improve cost efficiency in a market characterised by uncertain demand and changing global trade conditions.

For pulp and timber producers, profitability increasingly depends not only on production scale but also on mill utilisation, raw material efficiency, logistics and the ability to adjust operating structures when demand weakens.

With no final decisions yet announced, the industry will be watching the outcome of the Uimaharju negotiations closely, particularly for any indication of how Stora Enso plans to balance cost reductions with the long-term competitiveness of its Finnish pulp and wood products operations.

Last Updated on 11/08/2026 by Jota Machinery