Rörvik Timber AB saw its losses deepen last year to SKr269m (2008: SKr233m loss), the company reported.
The company, which is operating under court bankruptcy protection, incurred costs due to lower production volumes and redundancies of SKr112m, while negative currency effects and reorganisation expenses accounted for a further SKr92m costs.
Net sales fell to SKr1.28bn (2008: SKr233m), with production more than halved at 347,000m³ (2008: 812,000m³).
Improved market conditions in the second half of 2009 led to reduced losses in the fourth quarter of SKr57m (2008: SKr120m), with production reaching 75,000m³ (2008: 195,000m³).
Rörvik is investing SKr113m in a finger-jointing factory in Myresjö, which is expected to open in the spring. Third-party companies will own the operation but Rörvik has an option to acquire it in the future.
The company recently reached agreement with its main bank to write off SKr150m in loans, with a further SKr100m of loans being converted into B shares.
