UCM Timber plc will cease acting as UK del credere agent for Mellanskog Industri AB from December 20.
The companies say that the agency has been terminated by “mutual and amicable agreement”.
The move follows the merger this summer of the Mellanskog Industri and AssiDomän Timber saw mill operations to create Sweden’s largest timber business, Royal Star Wood Products AB (ttjonline.com June 3 2003).
All contracts due after December 20 will be handled by Royal Star through their UK office AssiDomän Forest & Timber. Royal Star will also be contacting Mellanskog customers to ensure an “orderly transfer and business continuity”.
It was stressed that the end of the relationship with UCM, the UK’s leading del credere agency, was “no reflection on the quality of service and support” it had provided during more than 40 years working with Mellanskog.
When Sveaskog, AssiDomän’s owner, and LRF and Skogsägarna Mellanskog, the two largest shareholders of Mindab (Mellanskog Industri AB), announced the formation of Royal Star, they said their aim was to create a market leader for ‘appearance’ or joinery timber in selected quality segments in Europe and Japan, with the emphasis on pine products.
Mindab comprised eight distribution sites, five sawmills, two planing plants, a glulam factory and a specialist processing facility and had annual sales of SKr2.5bn. AssiDomän Timber had eight sawmills, two processing plants and SKr2.9bn annual turnover.
The UK is the biggest export market for Royal Star.
