The company identified high input costs, limited labor and housing availability, and sustained declines in pricing as factors behind the decision.
İflas
Solikamskbumprom is seeking $245 million from a Chinese company as more than 10 creditors pursue bankruptcy claims.
The planned closure will remove about 110 thousand m3 of annual lumber production.
The site makes solid-wood interior products for DIY retailers, with Leroy Merlin previously accounting for 92% of its production.
The company attributed the insolvency to delays at a new production facility and plans to seek an investor while reducing operations to one shift.
Family-owned company founded in 1954 cites wood supply challenges and foreign competition.
Tropical Storm Arthur damage and the 56-year-old facility make repairs uneconomic; officials will meet employees about transfers and the mill will stop after remaining inventory is processed.
Government weighs rent freeze through 2028 and bankruptcy moratorium for forest-sector firms.
Industry groups seek a three-year bankruptcy moratorium as losses top 15 billion rubles.