Metsä Wood launches strategic review of UK operations amid profitability challenges

Metsä Wood, part of Metsä Group, has launched a strategic review of its UK operations in response to significant changes in market conditions. The review aims to identify ways to address profitability challenges while maintaining growth opportunities in engineered wood products. It is expected to be completed during the first half of 2027.

Aerial view of Metsä Wood's Boston production site in the UK, showing manufacturing buildings, warehouses and timber storage areas. — Metsä Wood's production site in Boston, UK. The company has launched a strategic review of its UK operations following significant changes in market conditions and ongoing profitability challenges.

According to Metsä Wood, the UK remains an important market for its engineered wood products despite the challenges facing the business.

“The UK continues to be one of the key European growth markets for Metsä Wood’s engineered wood products. In the strategic review we will explore possibilities to continue on a growth trajectory in engineered wood products, while addressing the profitability challenges of Metsä Wood UK,” says Jussi Noponen, Executive Vice President of Metsä Wood.

The company has not specified which strategic alternatives will be considered or whether the review could lead to further changes in its UK operations.

Earlier restructuring plans and renewed growth ambitions

The strategic review follows a year of significant developments in Metsä Wood's UK business.

In February 2026, the company announced plans to scale down its UK operations in response to changes in the competitive landscape and evolving customer requirements. The initial plans were expected to affect approximately 140 positions across the organisation.

In September, however, Metsä Wood outlined a renewed growth strategy for the UK market, focusing on stronger customer partnerships, product development, manufacturing capabilities and improved service.

At the time, the company highlighted its manufacturing sites in Boston and King's Lynn as important parts of its UK operations. It also pointed to recent investments, including a new production line for door linings and casings, as evidence of its long-term commitment to the market.

The newly announced strategic review will now examine how Metsä Wood can continue developing its engineered wood products business while addressing the profitability challenges facing its UK operations.