Garo moves production from Poland to Sweden
Swedish manufacturer Garo is closing its Polish production facility and consolidating operations to Gnosjö and Hillerstorp in Sweden. The move affects approximately 80 employees in Poland and is expected to generate annual net savings of at least SEK 25 million, about EUR 2.3 million.
The decision is driven by shrinking cost advantages in Poland, where rising wages have eroded the margin between Polish and Swedish production costs. With Garo's current product portfolio carrying a lower proportion of direct production time, the remaining cost differential has become insufficient to justify the operational complexity of split-site manufacturing, according to a press release from the company.
The transition will be carried out in stages throughout 2026, with no expected impact on customer deliveries. The workforce in Hillerstorp and Gnosjö will be expanded to absorb the added production volume.
"By consolidating production, we strengthen our operational efficiency while getting closer to both customers and development activities," said acting CEO Joseph Ree.
The Polish property will be put up for sale. It is valued at between SEK 110 and 130 million (EUR 10.1 – 11.2 million), subject to market demand and timing.
Alongside the production move, Garo is also closing its sales office in Germany. Customer relationships will be maintained through existing distribution channels.
Some restructuring costs will be incurred during the implementation phase, but the combined measures are expected to contribute positively to profitability over time.
