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Management Side
Södra to Close Hardwood Sawmill
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Stockholm, Sweden 13 October 2015 -- Södra is implementing structural changes in its sawmill and planing operations to strengthen the company's long-term competitiveness. Negotiations with trade unions will be initiated with the intention of closing the hardwood sawmill in Traryd. Just over 20 employees are affected.

In recent years, Södra has worked intensively to increase the profitability of its sawmill and planing operations by optimising the flow of raw material to customers. Global changes, price levels and competition have led Södra to also oversee the structure.

"We converted the Traryd sawmill from softwood to hardwood in 2011 in an attempt to manage our members' hardwood logs efficiently. We have tried a range of solutions, such as only sawing hardwood, sawing both softwood and hardwood, and becoming more integrated with our hardwood sawmill in Djursdala. However, none of these endeavours has borne fruit and despite great effort, we have not been able to meet our return targets. Against this background, we have now decided to initiate negotiations regarding a step-by-step closure of the sawmill in 2016," says Håkan Svensson, President of Södra Wood.

Södra works continuously to create conditions for profitable and successful forestry. A long-term profitable sawmill industry is an essential part of the assignment from its owners to create profitability for forest estates.

Södra Wood is one of three business areas in the Södra Group, with operations that supply sawn and planed timber, as well as interior wood products. Södra Wood has 11 sawmills, of which nine handle softwood and produce sawn timber from spruce and pine. Two of the sawmills, Traryd and Djursdala, process hardwood, and produce timber from oak, birch, ash and alder. Södra Wood produces approximately 2 million cubic metres of sawn timber annually. In 2014, the business area generated sales of about SEK 5.5 billion and had 1,400 employees.



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