Metsäliitto to close Soinlahti sawmill

Metsäliitto Co-operative is to commence labour negotiations at its Soinlahti sawmill, after announcing it sees no possibility of making the operation profitable in the current market.

The Soinlahti operation has been making “heavy losses already for several years” according to Metsäliitto, with the weak market for sawn timber, high price of raw materials and ongoing economic downturn hitting the sawmill’s profitability. Negotiations will affect the site’s entire staff of 69.

Soinlahti produces 150,000m³ a year, which is mainly supplied to the Finnish domestic market.

“In our solid wood industry, we have responded to the changes in the operating environment by adjusting our production since the end of 2007 in Soinlahti and our other mills,” said Ole Salvén, group executive vice-president of Metsäliitto’s wood products division.

"Despite these actions, the financial result for the solid wood business line will be unprofitable for this year."

Metsäliitto Co-operative handles the wood supply for Metsäliitto Group, the parent organisation of Finnforest.