Ground work is under way on the construction of Södra’s new sawmill at Värö, Sweden.

Södra Timber said it had now obtained all licences for the new 750,000m³ capacity mill, allowing it to transfer machinery and equipment from Klausner’s Adelebsen mill in Germany. Södra had already agreed a deal to purchase the equipment of the closed German mill.

Klausner will be responsible for dismantling, relocating, constructing and starting up the Värö facility. Dismantling is under way in Germany and construction at the Värö site will start in October.

Klausner has secured the participation of machinery manufacturers Link and Springer in the project.

“This means that the same staff that built the sawmill in Adelebsen will now be reassembling the sawmill in Värö,” said Södra Timber president Peter Nilsson.

“We plan to begin production at the facility in the summer of 2011. Production at the existing sawmill in Värö will continue as usual during the entire construction period,” he added.