The Norwegian facility in Hauerseter, which is part of the Södra Wood business area, was acquired in 2012 and has suffered from profitability problems. Having reviewed various alternatives to improve profitability, the decision has now been taken to close the sawmill but to continue operation of the planing mill on a two-shift rotation.
According to the schedule, the sawmill will remain in operation until mid-February.
A total of 17 full-time positions will be affected, mainly in production. Negotiations have been initiated regarding redundancies and these are expected to be completed at the end of October. Södra is working to capitalise on expertise and experience and to support employees made redundant due to a shortage of work.
Since 2013, Södra has deployed a Group strategy focused on profitable growth by being a value-generating and cohesive Group. An integral part of this strategy is to ensure highly efficient and profitable production. The changes at Södra Wood in recent years are part of this effort to enhance the underlying profitability and strengthen Södra's competitiveness in the sawn and planed timber market and the market for interior wood products. Södra Wood has implemented a number of measures to optimise its structure and profitability.