Consumables

Metsäliitto planning to close Soinlahti sawmill

Wednesday 03. September 2008 - Metsäliitto Cooperative will commence statutory labour negotiations at the Soinlahti sawmill regarding plans to close the mill due to long-term unprofitable operations. The negotiations will affect the mill's entire personnel (69 employees).

The Soinlahti sawmill has made heavy losses already for several years despite steps taken to develop its operations. Metsäliitto does not consider it possible to make the sawmill profitable due to the sharply weakened market situation of sawn goods, the high price of wood raw material and the prevailing downturn in the economy.

“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,” says Ole Salvén, Group Executive Vice President, Metsäliitto Wood Products Industry. “Despite these actions, the financial result for the Solid Wood Business Line will be unprofitable for this year.”

The proposal for commencing statutory negotiations was presented to the employees of the Soinlahti sawmill on 3 September 2008.

The production capacity of the sawmill, located in Iisalmi, Finland, is 150,000 cubic metres. Most of the mill’s production is supplied to the Finnish markets and Metsäliitto Wood Product Industry’s own upgrading. The sawmill was established in 1952.

The annual capacity of Metsäliitto Wood Product Industry’s Solid Wood Business Line is approx. 2.2 million cubic metres of spruce and pine sawn timber, and processed products. The business line has 10 sawmills in Finland. The spruce sawmills are located in Kyröskoski, Renko, Soinlahti and Vilppula and the pine sawmills in Kemi (Karihaara), Kyrö, Lappeenranta and Merikarvia. The mills in Eskola and Teuva-Kaskinen are specialised sawmills. The business line employs about 800 people in Finland.