Stora Enso has announced a EUR 19 million investment aimed at increasing fluff pulp production at its Skutskär production unit in Sweden, while simultaneously confirming the permanent closure of one of the site’s softwood pulp production lines following the conclusion of change negotiations.
The investment is intended to strengthen the company’s position in the growing fluff pulp market, driven by rising global demand for hygiene products and demographic trends, including aging populations. The planned upgrades will improve production stability, efficiency and product quality, while also enabling future fiber blend developments.
Once completed, the project is expected to increase fluff pulp production capacity at Skutskär by approximately 10%. The investment is scheduled for completion during the fourth quarter of 2027 and falls within Stora Enso’s existing capital expenditure framework.
“This is an important step for Stora Enso. Fluff pulp usage is growing, based on aging population across the globe and increased usage of hygiene products and with demand expected to outgrow supply over time. In line with our strategy, we are shaping our business for accelerated growth and value creation by serving demanding customers,” said Johanna Hagelberg, Executive Vice President, Biomaterials Business Area at Stora Enso.
At the same time, the company has confirmed the permanent closure of softwood pulp production on fiberline 3 (L3) at the Skutskär site. As previously communicated, production on the line is expected to cease during the third quarter of 2026, subject to the fulfilment of existing customer commitments.
According to Stora Enso, current market conditions do not support a sustainable long-term future for the softwood production line. The company intends to focus resources on strengthening its position in the fluff pulp segment and continue the restructuring process at the site.
“Market conditions did not support a viable path for the future of L3. This investment sharpens our focus on fluff and the work to restructure the organisation accordingly continues. We are positioning Skutskär strategically for long-term competitiveness in the expanding fluff market,” said Timo Tidenberg, Head of Stora Enso’s Business Unit Skutskär.
Following the completion of the capacity expansion project, the Skutskär production unit will have an annual fluff pulp production capacity of approximately 440,000 tonnes, further reinforcing its role as one of Europe’s leading fluff pulp manufacturing sites.
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