Large parts of the existing trimmer will be rebuilt with new machines and control systems, while a new cutting system and installation of automated sorting will complete the investment.
"The equipment we have today dates from the mid-1980s and has done us well but this investment will provide a significant improvement," said Nyby sawmill manager Karl Pontus Larsson.
ScanWare will supply a BoardMaster NOV, while CGV will deliver the machinery and control system. The equipment will become operational in the fourth quarter.
Mr Larsson said automated timber sorting would provide more consistent quality grades, increased flexibility to meet customer requirements and lower production costs.