Switzerland’s largest sawmill Mayr-Melnhof Swiss Timber is embarking on a CHF48.5m investment in wood pellet and laminated timber facilities as it seeks to refocus its business and aim for higher profit margins in a “challenging” market.
Mayr-Melnhof group CEO Josef Dringel said construction work on a CHF13.5m 60,000-ton capacity pellet plant at the Domat sawmill had already started, with further CHF35m plans for a laminated wood plant also in the pipeline.
The company said challenging conditions, including a strong Swiss franc, high log prices and an insufficient raw material supply had influenced its decision to refocus the Swiss Timber business, which involves reducing sawn timber output with a return to a single shift.
“With this large-scale action and investment programme, we can significantly contribute to a new direction for the Swiss timber industry and become a wood processing role model,” added Mr Dringel.
The laminated timber plant, which includes production of cross-laminated timber construction panels, is scheduled to be developed in 2012/2013 and have an output of 50,000m³.
Cross-laminated timber is commonly used for walls, ceilings and roof elements in housing, as well as industrial and commercial buildings.
Swiss Timber hopes to return to full production as “quickly as possible”.
