The investment, which will see the immediate installation of kilns at the Värö mill, is in advance of Södra introducing a three-shift system in September, taking production capacity up to 600,000m3.
"The decision was made to invest in progressive kilns from Valutec, as their operating costs are low," said Håkan Svensson, acting president of Södra Timber.
"These are fitted with heat recovery and require no staffing. These progressive kilns are also particularly well suited to drying side boards containing a lot of water.
"This means that they will provide a good complement to the existing chamber kilns, which are more suited to centre cut volume."
Mr Svensson said Södra was recording increased demand from Asia, the US and northern European countries.
Production on three shifts will be 80% spruce and 20% pine.
The sawmill is currently being fine-tuned so it can achieve the increase in production.
