Metsä Group H1 sales also revealed

Metsä Fibre starts talks on temporary layoffs at Joutseno mill

13 August 2024

Companies & suppliers

The Joutseno mill employs around 190 people in total. Image: Metsä Group

Metsä Fibre will start negotiations on possible temporary layoffs at its Joutseno pulp mill in Finland citing a need for temporary adjustment of production to meet low delivery volumes.

The change negotiations involve the entire workforce of the Joutseno mill; around 190 people in total. It is estimated that the planned layoffs, if implemented, would last up to 90 days and could be implemented in several tranches by the end of January 2025.

The targeting, amounts, and timing of the layoffs will be clarified by the end of this year.

Metsä Group’s pulp and sawmill business, Metsä Fibre produces pulp and sawn timber as well as other bioproducts such as biochemicals and bioenergy. It has 1,600 employees.

In 2023, Metsä Fibre’s sales totalled €2.5bn (£2.14bn) while sales of the whole Metsä Group were €6.1bn.

In its results for the first half of 2024, released earlier this month, Metsä Group said it achieved sales of nearly €2.94bn, including sales of €1.48bn in Q2.

President and CEO Ilkka Hämälä said: “The first half of 2024 was financially very weak for Metsä Group. This was due to lower year-over-year sales prices, especially in pulp and paperboard, and the continued increase in wood costs.

“In the review period, political strikes caused a loss of €60m in operating profit. The gas explosion at the Kemi bioproduct mill’s evaporation plant reduced comparable operating profit by approximately €100m before insurance compensation.

“Despite the gloomy figures, positive development is seen in many of our businesses. In Europe, the pulp market was strong in the second quarter, and the price level is increasing.

“Demand for fresh fibre paperboards in 2024 has clearly improved from last year's record low levels.”

During Q2, the group’s Kemi bioproduct mill returned online in June after the damage resulting from a gas explosion at the evaporation plant had been repaired.

Additionally, in May the group completed a transaction with which the ownership of its Russian subsidiaries was transferred to the VLP Group.

In 2022, Metsä Group discontinued its business operations in Russia, including the Metsä Svir sawmill, wood supply and paperboard sales. The completion of this transaction means the group no longer owns anything in Russia.