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Stora Enso Plans Gruvön CLT Closure, 80 Jobs at Risk

Paper Recycling  |  2026-09-30 10:37:02

Stora Enso plans to discontinue cross-laminated timber production at its Gruvön mill in Sweden by the end of 2026. The proposed restructuring could affect up to 80 positions as weak CLT demand, rising wood costs and high fixed production costs pressure profitability.

Stora Enso Plans Gruvön CLT Closure, 80 Jobs at Risk
Summary
  • Discontinuation Plans: Finnish forestry major Stora Enso announced plans to permanently shut down cross-laminated timber (CLT) production at its Gruvön mill in Sweden by the end of 2026.
  • Impact on Workforce: The restructuring involves change negotiations affecting around 220 employees and could potentially eliminate up to 80 positions.
  • Drivers of Closure: Persistent profitability challenges, slower-than-expected market demand growth, escalating wood procurement costs, and high fixed production expenses forced the move.

Stora Enso Plans to Close Gruvön CLT Production, Affecting Up to 80 Jobs

Stora Enso plans to discontinue cross-laminated timber production at its Gruvön mill in Sweden by the end of 2026, citing slower-than-expected market growth, rising wood costs and high fixed production costs. The proposed restructuring could affect up to 80 positions.

By Paul Ploumis
Published September 30, 2026

Key Points

  • Stora Enso is proposing to permanently close cross-laminated timber production at Gruvön by the end of 2026.
  • Change negotiations cover approximately 220 employees and could affect up to 80 positions.
  • The company cited subdued CLT market growth, higher wood procurement costs and relatively high fixed production costs.
  • Sawn and planed timber production at Gruvön would continue, while Nordic CLT customers would be supplied from Stora Enso facilities in the Czech Republic and Austria.

MONTREAL (Scrap Monster): Finnish forestry and renewable-materials producer Stora Enso Oyj plans to discontinue cross-laminated timber (CLT) production at its Gruvön sawmill in Sweden and concentrate the site more heavily on sawn and planed timber.

If implemented, the proposal would permanently close the Gruvön CLT production unit by the end of 2026. Stora Enso is beginning change negotiations with union representatives covering approximately 220 employees at the mill, including its Nordic CLT sales organization.

The restructuring could affect a maximum of 80 positions. The company stressed that no final decision on either the closure or employee reductions will be taken until the negotiations are completed.

Weak CLT Demand and Rising Wood Costs Pressure Profitability

Stora Enso said the Gruvön CLT operation has been challenged by slower-than-expected market growth in recent years.

Higher wood procurement costs have added further pressure, while the relatively high fixed costs associated with CLT manufacturing have limited the unit's prospects for sustainable profitability.

Jonas Lindqvist, Head of Business Unit Skoghall at Stora Enso, said subdued market conditions had left the outlook for profitable CLT production at Gruvön too limited despite efforts by employees at the facility.

According to Lindqvist, the proposed restructuring would allow Stora Enso to focus on developing its sawn and planed timber operations at Gruvön. He said the company would support affected employees through the restructuring process.

Gruvön Sawmill Operations Will Continue

The proposed closure applies specifically to the CLT operation and would not shut the wider Gruvön sawmill.

Stora Enso said deliveries of sawn timber from Gruvön will continue as usual. The company also expects the proposed restructuring to have no impact on wood consumption within Business Unit Skoghall.

If the closure proceeds, Stora Enso will continue supplying CLT products to Nordic customers from its three other CLT manufacturing units: Ždírec in the Czech Republic and Ybbs and Bad St. Leonhard in Austria.

Gruvön also produces sawn timber, processed timber, pellets and made-to-order products for the construction sector.

Latest Restructuring in Stora Enso's Wood Operations

The Gruvön proposal follows other recent changes across Stora Enso's European wood and pulp operations.

In September, the company completed negotiations on the permanent closure of its Veitsiluoto sawmill in Kemi, Finland, resulting in approximately 60 redundancies as production was consolidated at other northern Finnish sawmills.

Stora Enso has also moved to close softwood pulp production on fiberline 3 at its Skutskär production unit in Sweden as it increases its focus on fluff pulp production.

The Gruvön process remains subject to completion of the local change negotiations. Until those discussions are concluded, the proposed CLT closure and associated workforce reductions are not final.

Also Read

Stora Enso to Permanently Close Veitsiluoto Sawmill in Finland

Stora Enso to Shut Skutskär Softwood Pulp Line on Weak Demand

Frequently Asked Questions


  • How many employees are impacted by the proposed change negotiations?
  • The negotiations cover approximately 220 employees—including the Nordic CLT sales team—and could result in the elimination of up to 80 positions.

  • How will Stora Enso continue serving its Nordic customers after the closure?
  • The company plans to fulfill Nordic CLT customer demand by supplying products from its alternative manufacturing facilities located in the Czech Republic and Austria.

  • Will other operations at the Gruvön site be affected by this decision?
  • No, sawn timber deliveries from Gruvön will continue without interruption, and the proposed restructuring is not expected to impact wood consumption within the Skoghall business unit.

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