Stockholm, Sweden 13 February 2017 -- Södra is investing just over SEK 200 million in the Långasjö, Värö, and Orrefors sawmills. The largest investment will be made in Långasjö, where production volume will increase from 280,000 cubic metres to 360,000 cubic metres, which will mean the creation of 25 jobs. The investment programme will be completed during the third quarter 2017.
Over the past year, Södra has worked intensively to increase the profitability of its sawmill operations by optimising the flows of raw materials to customers and reviewing the sawmill structure. The restructuring programme, which was presented in June last year, includes a SEK 200 million investment package at selected sawmills.
The largest investment, of about SEK 100 million, will be made at the Långasjö sawmill and aims to increase production volume from 280,000 to 360,000 m³.
"To achieve this, we will replace the old small-dimension timber saw line with a new profiling curve sawing line, and thereby simplify and streamline throughput at the saw. In addition, we will build a new stacker and binding stick stacker and also install a completely new wood dryer. We will also construct a new 8,000-square-metre warehouse. The project includes relocating distribution to the Swedish building trade from our Torsås sawmill, which will be closed after the summer. The projects in Långasjö started in November and are scheduled to be complete this autumn," said Jörgen Lindquist, Business Area President for Södra Wood.
The investment also means 25 new jobs in Långasjö. Employees at the Torsås sawmill have been able to apply for these jobs as they are within commuting distance. In total, 15 employees will move from the Torsås sawmill.
SEK 80 million is also being invested at Södra's largest sawmill in Värö, broken down into many smaller investments. All of these aim to further streamline production to improve profitability.
"In addition to these investments, we are working intensively at the Värö sawmill, as well as every other Södra sawmill, with Lean principles so that staff, with all their expertise, can operate the sawmill machines as safely and efficiently as possible," said Jörgen Lindquist.
At its small-dimension timber sawmill in Orrefors, Södra is investing about SEK 30 million in a new boiler and drying facility, which will enable production increases in the future. "The investment is necessary for profitability. Currently, there is insufficient boiler capacity, which means we must sell some goods undried. The investment will enable us to increase production and also dry the entire sawn volume," said Jörgen Lindquist.