Only the UK will remain as an export market for the mill after the change.
The decision follows a period of consideration of the future of the mill after a period where the facility was recording “serious problems with profitability” due to turbulence in external markets.
Moelven’s management decided a radical change was needed to the facility, which had only had a new planing mill installed in 2013.
Division manager Anders Lindh of Moelven Timber said the mill fitted well into the structure operated by Moelven Wood in Sweden and that production could be adjusted and adapted, in a good way, to a mainly Scandinavian market.
Moelven said the move meant the company’s Swedish business would be acquiring a very skilled, almost new production facility.
This decision means that the planing mill at Moelven’s Värmlands Trä site in Saffle will be closed.