"The decision to close the Näpi Sawmill was made due to falling availability of raw material in the long run, increased costs and low profitability," the company said.

The Näpi Sawmill will wind up its activities gradually by the end of 2023.

"The plan to close the Näpi Sawmill constitutes sad news for the company and our local workers. Unfortunately, the rapidly shrinking timber sector forces us to take action and prioritize the use of our resources. We see the need to concentrate on strategic goals and invest in fewer and stronger sawmills to improve the competitive ability of the timber products business," said Lars Völkel, vice president of Stora Enso's timber products division.

The Näpi Sawmill makes sawn timber, treated timber and wood pellets. The sawmill's annual sawn timber production volume is 50,000 cubic meters. The company's two planing and paint lines produce 180,000 cubic meters of treated timber. In addition, 25,000 tons of pellets are produced annually.

"The sawmill at Näpi has occupied an important place in the local community for 30 years. We have a strong team made up of experienced workers. Stora Enso will work with the local community and partners to help the employees affected by the plan to close the sawmill during this difficult period," Anne-Liis Kapstas, director of the Näpi Sawmill said.

The decision to close the Näpi Sawmill is not the end of Stora Enso's operations in Estonia. "We will continue developing the Imavere Sawmill, which is the largest in the Baltics, to continue as a strong player in the region," Lars Völkel said.

Stora Enso announced cuts on Thursday that will see a total of 1,150 people laid off. In addition to the Näpi Sawmill in Estonia, Stora Enso will be closing its Sunila cellulose plant in Finland, De Hoop paperboard mill in the Netherlands and one of its production lines in Poland. Around 300 management jobs will also be cut.

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