SCA Timber will invest £500,000 in the Jämtlamell sawmill in Stugun, Sweden in order to increase productivity.
The investment to modernise and upgrade kilns will boost production of solid wood products from the current 140,000m3, and follows an earlier £500,000 investment that SCA made in the Jämtlamell-owned facility.
SCA acquired a minority shareholding in Jämtlamell in the second quarter of 2006, with Lars-Plof Alm, the manager of the Stugun-based sawmill, saying that this had led to “very positive developments”.
Mr Alm added that he expected this positive outlook to continue due to “SCA’s confidence in progressing these investments”.
SCA said sales and profitability at the Stugun mill, which employs 85 people, had grown during the past year.
