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FollaCell, a cornerstone employer in Follafoss, Norway, has announced a full production stop and subsequent employee furloughs, citing a weakening global market for paper, pulp and timber products. The decision, announced on Tuesday, February 17, 2026, marks the first complete production halt for the company in twelve years. The move impacts approximately 70 employees and apprentices, according to reports.
The downturn affects MM FollaCell AS, a significant industrial presence in the region. Factory manager Odd Morten Aalberg stated that current sales forecasts necessitate the production pause and temporary layoffs. While the company has experienced growth in recent years, shifting global economic conditions have created unfavorable market conditions. This decision underscores the vulnerability of even established manufacturers to fluctuations in the international economy.
The production stoppage will function as a three-week collective vacation for the workforce, a measure intended to mitigate the financial impact on the company while navigating the challenging market landscape. This approach allows FollaCell to temporarily reduce output without permanently reducing its workforce. The company remains optimistic about future prospects, despite the current difficulties.
Impact on the Local Economy
FollaCell’s operations are deeply intertwined with the economic well-being of Follafoss and the surrounding Steinkjer municipality. As a “cornerstone enterprise,” the company’s struggles reverberate throughout the local community. The temporary closure will undoubtedly create uncertainty for employees and their families, as well as impacting local businesses that rely on FollaCell’s workforce. The company’s recent securing of a “historically large contract” highlights the recent positive trajectory, making the current situation particularly jarring.
Global Market Pressures
The decision to halt production is directly linked to deteriorating conditions in the global market for paper, cardboard, and pulp. Demand has softened, creating a surplus and driving down prices. This trend is affecting manufacturers worldwide, forcing them to adjust production levels and implement cost-cutting measures. The downturn is a reminder of the interconnectedness of global supply chains and the sensitivity of manufacturing to external economic forces.
Despite the challenging circumstances, reports indicate that a significant portion of the FollaCell workforce remains optimistic about the company’s long-term viability. This resilience is likely fueled by the company’s history of success and its importance to the local economy. The company has not yet announced a firm date for resuming production, but will continue to monitor market conditions closely.
Recent Regional Incidents
While unrelated to the production halt, a separate incident occurred near Follafoss on February 16, 2026, involving a semi-trailer truck blocking a county road at Follavatnet. Steinkjer-avisa reported the incident, which caused traffic disruptions. This event, while separate, highlights the logistical challenges faced by businesses operating in the region.
Looking ahead, the duration of the production stoppage will depend on the recovery of the global market. FollaCell will be closely monitoring economic indicators and adjusting its operations accordingly. The company’s ability to navigate this challenging period will be crucial not only for its own survival but also for the economic health of Follafoss.
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