Södra Timber of Sweden is closing most operations at its Åtvidaberg sawmill due competitive conditions in the sawn timber market.
Chief executive Peter Nilsson said that the plant would require “significant investment” to remain viable.
“We have to have first class facilities in the face of competition to safeguard our abilty to pay for timber, and we do not think it is possible to continue investing in all 10 of our sawmills and this [move] will result in a more appropriate structure,” he said.
The rest of the company’s sawmilling operation, he added, is doing well.
“We’re seeing a good balance in the business in eastern areas thanks to our operations in Kinda and the development we are seeing at our Mönsterås mill,” he said. “We will also be increasing mill production and will need more raw material at Värö over the next year where we are currently building a sawmill with annual capacity of 750,000m³.”
Södra will keep its treatment facility and the Södra Skog sales office at Åtvidaberg open.
The company has also announced that it’s Traryd mill will transfer to its Södra Interiör division and switch to produce 100% hardwood.
The target is to produce 35,000m³ of solid volume under bark in 2011, with species including aspen, ash, alder and beech as well as the main production in oak and birch.
The plant will purchase raw material in the area to the west and south of Götaland, while Sodra’s Djursdala hardwood mill will buy from the east.
