Stora Enso to Close Gruvön CLT Production by Year-End 2026
The Swedish building materials firm will focus on sawn goods at its Gruvön sawmill, impacting up to 80 positions due to subdued market conditions and rising wood costs.
Stora Enso Shifts Focus at Gruvön Sawmill
Stora Enso plans to discontinue Cross Laminated Timber (CLT) production at its Gruvön sawmill in Sweden by the end of 2026. The company will initiate discussions with union representatives regarding this strategic shift, which aims to concentrate operations on sawn goods.
The Gruvön mill currently employs approximately 220 individuals, and the proposed closure of the CLT unit, including its Nordic sales organization, could affect a maximum of 80 positions. Final decisions on the closure and employee impact will be made following the conclusion of these local negotiations.
Market Conditions Drive Production Change
The decision stems from challenging market conditions for CLT, which have seen slower-than-anticipated growth in recent years. Stora Enso also cited increasing wood costs and relatively high fixed production expenses as factors pressuring the profitability of its Gruvön CLT operations.
Jonas Lindqvist, Head of Business Unit Skoghall, Stora Enso, stated that the prospects for sustainable profitability in Gruvön's CLT production were too limited despite employee efforts. This planned change aligns with the company's strategy to further develop its high-quality sawn and planed goods production at the Gruvön sawmill.
Continued CLT Supply from Other European Units
Despite the planned closure at Gruvön, Stora Enso confirms its commitment to supplying high-quality CLT products to its Nordic customers. This supply will continue from its three other CLT manufacturing units located in Ždírec in the Czech Republic, and Ybbs and Bad St. Leonhard in Austria.
Furthermore, the company assures that sawn goods deliveries to customers from the Gruvön mill will proceed as usual. The potential closure of the CLT unit at Gruvön is not expected to impact the wood consumption of Stora Enso's Business Unit Skoghall.
Implications for Asia's Engineered Timber Market
The market challenges cited by Stora Enso, including slower growth in CLT demand and rising wood costs, reflect broader trends that could influence engineered wood product markets across Asia.
For example, in markets like Japan and South Korea, where mass timber construction is gaining traction, procurement teams specifying CLT should assess the stability of European supply chains and potential cost fluctuations.
Asian manufacturers of engineered timber products, particularly those reliant on imported raw materials, may also face similar pressures on profitability due to rising wood costs, prompting a review of production efficiencies and market diversification strategies for 2027.
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