Klausner is closing its Niedersachsen sawmill and selling the machinery to Södra Timber, which will use the equipment to expand its production at Väro to 750,000m³ a year.

The two timber giants have also announced a future marketing partnership in their main markets.

The closure of Klausner’s Holz Niedersachsen mill in Adelebsen, one of Europe’s largest sawmills, is one of the biggest casualties to result from the worldwide recession. The pine and spruce mill has an annual planing capacity of 900,000m³.

Klausner CEO Leopold Stephan said the company deeply regretted the decision to close the mill. “The existing timber volume is not enough to supply the mill’s capacity,” he said. “Therefore, there was no other choice.”

The German company had invested approximately €30m in the mill since taking the site over from Kühne GmbH in 2006.

Södra flagged up its intention to build a giant new mill at the end of 2009.

“With the investment in Väro, we get a cost-effective and flexible mill,” said Södra CEO Leif Brodén. “This strengthens our competitiveness which is very important both in the timber market and in the raw materials market.”

Klausner owner Fritz Klausner said he was looking forward to the two companies working together.

“Klausner and Södra Timber complement each other and a joint approach to sales and logistics in our main markets will provide value to all stakeholders, including our customers,” he said.

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