Gällö Timber has announced plans to close the Tjärnviks Trä sawmill with the loss of 45 jobs.
Gällo, a joint venture between Pesson Ibest and SCA Timber, said the closure decision was due to insufficient raw material supply and poor profitability.
Tjärnviks Trä, located in mid-Sweden, has a spruce/pine production capacity of more than 100,000m³, though output has been lower in the last year because of log shortages.
“We have not been able to procure the raw material we need for a profitable business,” said Tommy Högberg, Gällö Timber president.
“Along with a weak market for wood products and poor profitability, we see no possibilities to continue operations.”
Negotiations with trade unions are now starting regarding a closure of the sawmill during 2012.
Gällö Timber was formed last year and then comprised three sawmills.
The Stugun sawing line has since closed and the facility is focusing on finished products for the Nordic builders’ merchant market. Production at the Gällö mill doubled to an annual production of 300,000m³.
