Norvik Timber Industries is selling Jarl Timber to Bergs Timber because the sawmill cannot remain competitive enough in the South Swedish sawmilling industry.
Bergs plans to use the Jarl mill at Broakulla to specialise in small logs and complement timber specifications at its other sawmills.
“Remaining as an independent sawmill in the competitive South Swedish environment is not an alternative for Jarl Timber,” said Sampsa Auvinen, interim managing director of Jarl Timber and CEO of Norvik Timber Industries.
“As a result, redundancies are inevitable with the specialisation of the Broakulla sawmill. It is unfortunate that the redundancies and cost cutting must take place, but these are necessary for the sawmill to continue its operation.”
Negotiations with the unions will be started and the number of people to be affected by the redundancy process is expected to be about 35.
Jarl cut lumber production last year, reducing from two shifts to one shift because of the competitive market situation. Jarl Timber processes and distributes in the region of 110,000m3 of sawn and planed timber.
