EU approves aid for South Karelia and Lohja to address impact of paper mill closures

Finland has been awarded EUR 1.1 million from the European Globalisation Adjustment Fund (EGF) to support the re-employment of workers made redundant by paper mill closures in South Karelia and the Lohja region. The European Parliament and the Council adopted the decision on the basis of an application submitted by the Ministry of Economic Affairs and Employment on 21 October 2026.

The total amount of aid will be EUR 1,102,560, of which EUR 904,560 will be allocated to South Karelia and the remaining EUR 198,000 to the Lohja region. The South Karelia and Lohja–Karkkila employment areas, which have been providing services to redundant workers since the beginning of 2026, will implement the aid measures.

“These paper mill workers have accumulated valuable expertise in maintenance, electrical and automation services that is now needed in the energy and data centre industries in South Karelia. Meanwhile, mechanical engineering companies in Lohja are seeking welders and machinists, and EGF support can help redundant workers retrain for these roles,” says Minister of Economic Affairs Sakari Puisto.

“Redundancies are always difficult, not only for the workers themselves but also their families.  Through EGF funding, we can support education, training and employment services that help redundant paper mill workers build new careers and avoid prolonged unemployment,” says Minister of Employment Matias Marttinen.

The application for EU aid concerned redundancies at paper mills operated by UPM, Stora Enso, Metsä Group and Sappi. The redundancies affected 93 workers at Sappi’s Kirkniemi mill in Lohja and 258 workers in South Karelia. Almost half of the aid beneficiaries are aged over 54.

Paper mill closures have been driven by a long-term decline in demand for printing and magazine paper. The mills in South Karelia have also faced higher costs following the end of timber imports from Russia and rising energy prices.