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Metsä Fibre Considers Temporary Layoffs as Pulp Market Remains Challenging

Metsä Fibre is considering temporary layoffs at its Joutseno pulp mill in Finland as weak pulp demand and wood market conditions continue to pressure production, providing another indicator of challenging conditions across the European forest-products sector.

 Joutseno facility in Finland Metsä Group Photo

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Metsä Fibre is preparing for the possibility of an extended adjustment to pulp production at its Joutseno mill in Finland, citing continued weakness in the pulp market and challenging conditions in the wood market.

The company, part of Metsä Group, announced Sept. 7 that it is beginning change negotiations concerning potential temporary layoffs affecting the mill’s entire workforce of approximately 160 employees.

“The pulp market situation remains challenging,” said Ismo Nousiainen, CEO of Metsä Fibre. “Due to the demand outlook and the situation in the wood market, we need to prepare for adjusting pulp production for a longer period than previously anticipated.”

The negotiations are scheduled to begin "during week 37" [in September], according to the company.

While the announcement is specific to pulp production, the conditions behind the move are relevant across the broader forest-products supply chain. Changes in pulp production can affect competition for wood fiber and raw materials, while prolonged weakness in demand provides another indication of the economic pressures facing European wood-products manufacturers.

Metsä Fibre produces pulp, sawn timber and other bioproducts, including biochemicals and bioenergy. The company reported 2025 sales of €2.6 billion and employs approximately 1,400 people.

Metsä Fibre’s parent company, Metsä Group, reported 2025 sales of €5.8 billion and is owned by Metsäliitto Cooperative, whose approximately 90,000 members are Finnish forest owners.

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