Stora Enso to Focus on Sawmilll Operations, Shut CLT Production

Paper Recycling  |  2026-09-30 03:36:04   |   By

The unit’s profitability has been badly impacted due to slower-than-anticipated demand growth, rising wood procurement costs and relatively high fixed production costs, a company news release said.

SEATTLE (Scrap Monster): Finnish forestry major Stora Enso Oyj has announced plans to discontinue cross-laminated timber (CLT) production at its Gruvön mill in Sweden.

The company plans to initiate change negotiations with union representatives covering approximately 220 employees, including the Nordic CLT sales team. The proposed restructuring could eliminate up to 80 positions. The permanent closure of the CLT manufacturing unit is expected by the end of 2026.

The unit’s profitability has been badly impacted due to slower-than-anticipated demand growth, rising wood procurement costs and relatively high fixed production costs, a company news release said.

According to Jonas Lindqvist, Head of Business Unit Skoghall, the proposed changes would allow the company to concentrate on developing its sawn and planed timber operations at Gruvön. He assured all possible support to affected employees throughout the restructuring process. Also, no final decision on the closure or workforce reductions would be taken before negotiations conclude, he added.

Meanwhile, Stora Enso will continue supplying CLT products to Nordic customers through its manufacturing facilities in the Czech Republic and Austria. The sawn timber deliveries from Gruvön will continue without disruption. In addition, the proposed restructuring is also not expected to affect wood consumption within Business Unit Skoghall.