Wedoany.com Report-Nov. 18, Stora Enso, Europe’s largest sawn wood producer, has launched a strategic review of its Central European sawmills and building solutions operations, which account for roughly half of its Wood Products sales globally. The review, announced last week, covers seven sawmills in Austria, Czechia, Poland, and Lithuania, with a combined annual production capacity of 3 million cubic meters, along with three cross-laminated timber (CLT) mills and their associated sales networks. The company noted the assessment could lead to divestments as it focuses on renewable packaging, a segment seen as critical to long-term growth.

Stora Enso has played a pivotal role in driving the global growth of cross‑laminated timber worldwide.

“Whilst the business in scope has a strong position in an attractive market, it does not bring strategic or operational synergies for Stora Enso’s core renewable packaging operations,” the company said.

The review highlights a shift in the Nordic group’s portfolio strategy. Central European operations are under scrutiny, while sawmills and processing units in Northern Europe—including Sweden, Finland, Estonia, and Latvia—remain strategically important and are excluded. These northern facilities align closely with Stora Enso’s packaging and renewable materials focus.

Any potential changes will follow co-determination negotiations and legal procedures in the affected countries. The company assured that operations will continue normally during the review, maintaining customer service and product quality.

The announcement comes as European timber markets face strong demand for engineered wood products such as CLT. Analysts view the review as a move to streamline Stora Enso’s portfolio and direct resources toward higher-growth areas, particularly renewable packaging solutions.

Founded in Finland and Sweden, Stora Enso has long been a leading indicator for Europe’s forestry sector. The decision to reassess half of its Wood Products segment reflects both challenges and opportunities for traditional timber operations in a market increasingly shaped by sustainability and packaging innovation.

The company plans to provide an update on the strategic review in 2026, keeping stakeholders informed of any potential divestments or structural adjustments in Central Europe.

This strategic review underlines Stora Enso’s intent to concentrate on its renewable packaging business while evaluating the long-term viability of its Central European timber and CLT operations. By aligning its portfolio with areas of highest growth potential, the company aims to strengthen its position in sustainable materials and maintain competitiveness in evolving European markets.