Stora Enso has announced that it will begin negotiations with employee representatives at its Gruvön sawmill in Sweden regarding a proposal to end Cross Laminated Timber (CLT) production and concentrate future activities on sawn goods.
The company stated that, if the plan proceeds, the CLT production unit at Gruvön could close permanently by the end of 2026.
The talks will involve approximately 220 people employed at the Gruvön mill and within the Nordic CLT sales organisation.
According to Stora Enso, up to 80 positions could be affected.
A final decision on the closure and its impact on employees will be made only after local negotiations have concluded.
Company representatives cited slower-than-anticipated growth in the CLT market and rising timber costs as key reasons for the review. High fixed costs associated with CLT production have also placed additional pressure on the site’s profitability.
Stora Enso Skoghall business unit head Jonas Lindqvist said: “Due to subdued market conditions, the prospects for sustainable profitability in CLT production in Gruvön have been too limited despite the excellent efforts made by our employees.
“The planned change will enable us to continue to focus and further develop our high-quality sawn and planed goods production at Gruvön sawmill in line with our strategy.
“We will support our personnel throughout the process and aim to work on restructuring the organisation at Gruvön accordingly.”
The company confirmed it intends to continue supplying CLT products to Nordic customers from its three remaining production sites in Ždírec, Czech Republic, and Ybbs and Bad St Leonhard, Austria.
In addition, Stora Enso said deliveries of sawn goods from Gruvön will continue as normal and any potential closure would not impact the wood consumption of Business Unit Skoghall.
The Gruvön mill, located in Sweden, employs around 220 people and manufactures sawn timber, processed timber, pellets, and custom products for the construction sector.
