Stora Enso invests €19m to expand fluff pulp production at Swedish site

Stora Enso has announced a €19 million investment to increase fluff pulp production capacity at its Skutskär production unit in Sweden, while also confirming plans to cease softwood pulp production on one of the site's fibre lines.

According to the company, the investment is intended to support growing demand for hygiene products and strengthen Skutskär's focus on specialised pulp grades. The upgrades are expected to improve production stability and efficiency, enhance product quality and enable greater flexibility in fibre blends.

As part of the project, fluff pulp production capacity at the site is expected to increase by around 10%. Once completed, the Skutskär facility is projected to have an annual fluff pulp production capacity of 440,000 tonnes.

The investment forms part of Stora Enso's existing capital expenditure plans and is scheduled for completion during the fourth quarter of 2027.

Alongside the investment, the company has concluded change negotiations regarding the future of fibre line 3 (L3), which currently produces softwood pulp. Stora Enso has decided to permanently close the line, with production expected to cease during the third quarter of 2026, subject to the fulfilment of customer orders.

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.

Johanna Hagelberg, Executive Vice President, Biomaterials Business Area at Stora Enso.

The changes form part of a broader reorganisation of the Skutskär production unit, which Stora Enso said will focus increasingly on fluff pulp production and improving the site's long-term competitiveness.

The investment is expected to strengthen the company's position in the European fluff pulp market while aligning production capacity with demand in hygiene-related applications.