Stora Enso Halts CLT Production at Swedish Gruvön Mill

Stora Enso to Exit CLT Production in Sweden

Stora Enso, a major global provider of renewable products, announced its intention to discontinue cross-laminated timber (CLT) production at its Gruvön sawmill in Sweden. The company plans to permanently close the CLT manufacturing unit by the end of 2026, shifting its focus at the Gruvön site entirely to sawn goods operations.

This strategic adjustment follows a review of the mill's long-term profitability and market conditions for CLT. The Gruvön facility currently employs approximately 220 individuals and produces a range of sawn and processed timber, pellets, and made-to-order construction products.

Market Challenges Drive Decision

The decision to cease CLT production at Gruvön stems from what Stora Enso described as slower-than-expected market growth for CLT in recent years. The company also cited increasing wood costs and relatively high fixed production expenses as factors that have pressured the unit's profitability.

Jonas Lindqvist, head of the Skoghall business unit at Stora Enso, stated that despite the efforts of employees, the prospects for sustainable profitability in CLT production at Gruvön had become too limited due to subdued market conditions.

The planned change aims to enable Stora Enso to further develop its high-quality sawn and planed goods production at Gruvön, aligning with its broader strategy.

Workforce Impact and Continued Supply

The proposed closure could affect up to 80 positions at the Gruvön mill, including roles within the Nordic CLT sales organization. Stora Enso has initiated negotiations with union representatives regarding the proposal and its potential impact on the workforce. No final decision on the closure or its effect on employees will be made until these local negotiations are concluded.

Despite the planned discontinuation at Gruvön, Stora Enso confirmed it would continue to supply CLT products to its Nordic customers from its three other production units located in Ždírec, Czech Republic, and Ybbs and Bad St Leonhard in Austria. Sawn goods deliveries from the Gruvön mill are expected to continue without interruption.

Implications for Engineered Wood Sourcing

While the Gruvön mill primarily served Nordic customers for CLT, this move by a significant global timber producer like Stora Enso signals ongoing market adjustments within the engineered wood sector.

Asian developers, architects, and procurement teams specifying CLT or other mass timber products should note that global supply dynamics can shift, even if the direct impact from this specific mill closure on Asian supply chains is not immediately apparent.

Buyers are advised to maintain open communication with their suppliers regarding sourcing locations and potential changes in product availability or lead times for engineered wood products, particularly those from European manufacturers, to ensure project continuity.