Södra is planning a new sawmill at the Södra Timber Varo site, which would generate huge additional capacity and increase productivity.

The Södra board has given the go-ahead for final planning of a 750,000m³ sawmill alongside the existing 275,000m³-capacity mill costing an unspecified sum. The company is to seek a licence for 1 million m³ and will make a final decision on the project before summer, a spokesperson said.

Södra Timber president Peter Nilsson said a tightening of both the markets and sourcing raw material meant that the only way to compete was to increase productivity. “This is a big step, but it will give us lots of possibilities to compete with much lower costs per unit,” he said.