Acquisitions relating to the Swedish forest industry have been making news in Sweden. The most significant new acquisition is that of AssiDomän by the state owned Sveaskog AB as part of a deal worth SKr11bn. Sveaskog has now acquired 95% of the shares in AssiDomän and, with it, 18% of Sweden’s productive forest area. It has also become the largest forest owning company in Europe.

Sweden’s minister for trade and industry, Björn Rosengren, says that it is important for the state to own forestland since forests benefit from long-term management. He maintains that such a large forest owner will be able to improve competitiveness in the timber market, that the deal will benefit small sawmills and will mean a greater opportunity to create jobs in sparsely populated areas. However, not everyone agrees with Mr Rosengren and it has been suggested that if the non-socialists are elected to govern later this year then the forests could be returned to private ownership.

Japanese interest

A very different acquisition has been made in Sweden by the Japanese company Freesin Homes which has bought three Swedish forest industry com-panies: Stensele and Sorsele sawmills in the province of Västerbotten and the house manufacturing company Hortlaxhus outside Piteå in Norrbotten. Japanese com-panies are buying production capacity in Sweden to supply their home market since there is a shortage of timber in Japan. One example is Tomuko, based at Insjön in the province of Dalarna, which has become the largest house manufacturer in Scandinavia and is now erecting an additional factory at Gävle.

SCA has been active in acquisitions in the US. It has bought the American soft paper com-pany Encore Paper Company from two risk capital funds in Wisconsin for the sum of US$92m. The purchase will increase SCA’s market share in the US to 19% and it will also strengthen the company’s position in the mid-west, north-east and south-east US. Encore has 350 employees and an annual turnover of SKr850m.

SCA has also acquired parts of the American protective packaging company Marko Foam Products through its American subsidiary Tuscarora, for SKr41m. The parts acquired have an annual turnover of SKr73.5m.

In the UK the privately owned Swedish timber giant, the VIDA Group, has opened a UK office in Ipswich and aims to target the expanding timber frame housing market and the DIY sector (TTJ December 15/22, 2001). On the negative side Holmen has decided to cut back its workforce by 50 people at its paperboard mill in Workington from a current level of 525. The personnel cutbacks are part of a programme intended to cut costs, improve productivity and increase production.

On the other hand, Holmen is making a major investment in the Hallsta paper mill in Sweden. A total of SKr1.85bn is being invested in a new paper machine, which will be installed by April.

Four organisations within the wood and furniture industries have combined to form the Swedish Federation of the Wood and Furniture Industries. The organisations involved are the Employers’ Association of the Swedish Wood Products Industry, the Association of the Swedish Wood Manufacturing Industry, the Employers’ Association of the Upholstery Industry and the Swedish Wood Panel Organisation. The new federation has approximately 700 member companies with a 25,000 employees in Sweden.

Comparing criteria

The differences between the two forest certification standards used in Sweden, the Forest Stewardship Council (FSC) and Pan European Forest Certification (PEFC), have been identified by environmental groups and the Swedish forest sector in a joint document entitled Forest Dove. This makes it possible for a forest owner to fulfil the forestry standard criteria for both the FSC and the PEFC. For owners of PEFC-certified forest, 17 additional criteria must be fulfilled and for owners of FSC-certified forests, four additional points. One issue that has not been resolved is the consideration of the needs of the indigenous Sami people’s reindeer husbandry. However, dialogue is under way between representatives of LRF Forest Owners and the Swedish National Sami Association.

To end on a high note, the figures issued for the third quarter of 2001 show that the total export value for Swedish forest and forest industry products was SKr80.5bn – approximately SKr2bn more than for the same period in 2000.