Stora Enso to Raise Skutskär Fluff Pulp Capacity by 10 Percent and Close Softwood Fibreline

Stora Enso to Raise Skutskär Fluff Pulp Capacity by 10 Percent and Close Softwood Fibreline

(IN BRIEF) Stora Enso is investing EUR 19 million to increase fluff pulp production at its Skutskär production unit in Sweden, supporting its strategy to focus on specialised pulp grades and respond to growing demand for hygiene products. The upgrades will improve production stability, efficiency and quality, enable future fibre blends and raise fluff pulp production capacity by around 10%. The investment is expected to be completed in the fourth quarter of 2027 and will bring Skutskär’s annual fluff pulp capacity to 440,000 tonnes. At the same time, Stora Enso has concluded change negotiations and decided to permanently close softwood pulp production on fibreline 3, with production expected to stop during the third quarter of 2026, subject to customer orders. The company said the decision reflects market conditions and a strategic move to position Skutskär for long-term competitiveness in the expanding fluff pulp market.

(PRESS RELEASE) HELSINKI, 17-Jun-2026 — /EuropaWire/ — Stora Enso is investing EUR 19 million to increase fluff pulp production at its Skutskär production unit in Sweden, strengthening the company’s focus on specialised pulp grades and responding to growing demand for hygiene products.

The investment is intended to reinforce Stora Enso’s position as Europe’s leading producer of fluff pulp. The planned upgrades at Skutskär will improve production stability and efficiency, enhance product quality, support future fibre blends and increase fluff pulp production capacity by approximately 10%.

The project is expected to be completed during the fourth quarter of 2027 and is included within Stora Enso’s capital expenditure guidance.

Johanna Hagelberg, Executive Vice President of Stora Enso’s Biomaterials Business Area, said the investment marks an important step for the company. She said demand for fluff pulp is growing due to the ageing global population and increased use of hygiene products, with demand expected to exceed supply over time. Hagelberg added that the move supports Stora Enso’s strategy to accelerate growth and value creation by serving demanding customers.

Alongside the investment decision, Stora Enso has concluded its change negotiations concerning the Skutskär site and has decided to permanently close softwood pulp production on fibreline 3, known as L3. Production on the line is expected to stop during the third quarter of 2026, subject to the fulfilment of customer orders.

Timo Tidenberg, Head of Stora Enso’s Business Unit Skutskär, said market conditions did not support a viable future for L3. He said the investment sharpens the site’s focus on fluff pulp, while restructuring work continues to align the organisation with the new direction. Tidenberg added that Stora Enso is positioning Skutskär for long-term competitiveness in the growing fluff pulp market.

After the planned capacity increase, the Skutskär site will have annual fluff pulp capacity of 440,000 tonnes.

Through the investment and restructuring, Stora Enso is focusing Skutskär more clearly on specialised biomaterials and higher-growth pulp segments, while adapting production to changing market conditions and demand trends in hygiene-related applications.

Link to press release 25 May 2026: Stora Enso plans to reorganise its Skutskär production unit in Sweden to focus on fluff pulp and increase competitiveness

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SOURCE: Stora Enso